125 CEOs in India share insights on risk and resilience, technology and AI, talent strategies, and ESG priorities
The world continues to face geopolitical tensions and economic uncertainty - but KPMG in India’s eleventh CEO Outlook shows that leaders are positive, if cautious, about the future.
Despite the confidence in the global economy dipping since last year, marking the lowest level of confidence observed since 2023 and reflecting the growing uncertainty, 83 per cent CEOs in India, compared to 79 per cent CEOs globally, are optimistic about their own organisations’ prospects and are strongly backing a combination of investment in AI (65 per cent) to sustain and fuel future growth.
Most CEOs in India have already adjusted their growth strategies to tackle ongoing, interconnected challenges. Looking ahead, the majority anticipate rising revenues and an increased workforce over the next three years. Expectations for AI investment returns have also accelerated, with most leaders in India now predicting results within one to three years - far sooner than the three to five years projected in 2024.
KPMG 2025 India CEO Outlook
In this complex environment, CEOs in India acknowledge the need to rethink their organisation’s roles and capabilities, while also adapting their growth strategies. Greater agility and faster decision-making are seen as a top leadership capability by 31 per cent CEOs in India and notably, 26 per cent of CEOs globally echo this view. In India, greater regulatory understanding (27 per cent) and broader digital and technological literacy (26 per cent) also rank high. Globally, transparency in communication (24 per cent) and the ability to identify, prioritise, and manage risks (23 per cent) round out the top leadership capabilities needed today.
In terms of risks, economic uncertainty ranks among the top three threats identified by CEOs in India - and risk resilience remains an indispensable attribute allied with that. This applies across multiple domains, including technology (cybersecurity, data protection, ethical use of AI), talent (skills shortages and a pressing upskilling need, especially around AI), and ESG (navigating a complex and evolving global landscape, and meeting the rising regulatory and reporting requirements relating to sustainability).
It’s a complex picture that is both challenging and energising CEOs in India and globally as they pursue growth, organisational prosperity and sustainable practices that will safeguard the business for the long term. The pressures are considerable - but so are the anticipated rewards for those organisations that can grasp the opportunities while tightly managing the risks.
Risk and Resilience
CEOs in India back their businesses despite economic uncertainty
Business leaders bet big on company’s growth despite economic turbulence
The KPMG 2025 CEO Outlook surveyed CEOs globally and in India on their three-year outlook on the business and economic landscapes. The confidence of CEOs in India in terms of growth prospects of the global economy has seen a decline, falling from 80 per cent in 2024 to 63 per cent in 2025. This marks the lowest level of confidence observed since 2023, reflecting the growing uncertainty in the current global environment, which is increasingly being shaped by regulatory pressures, concerns around technology disruption and cybersecurity, and challenges associated with AI integration.
Although confidence in the outlook of the global economy has dipped, CEOs in India and globally continue to express optimism about their company’s growth prospects. The confidence of CEOs in India in the outlook for their organisations improved to 83 per cent in 2025 from 68 per cent in 2024, while that of CEOs globally increased to 79 per cent in 2025 from 76 per cent in 2024. This renewed optimism of CEOs in India and globally demonstrates strong resilience to navigate the uncertain environment. Moreover, confidence in the country’s outlook reinforces the willingness of CEOs, both in India and globally, to pursue inorganic growth opportunities.
Keeping up with the trend, the level of confidence of CEOs in India in their country’s growth prospects witnessed a slight improvement in 2025 from 2024 levels, indicating their continued belief in the potential of the domestic economy.
Shifting risk landscape and growth headwinds
As advanced technologies continue to evolve, the imperative to assess and mitigate associated risks is becoming increasingly critical. This is evident from insights shared by CEOs in India, who note that four out of the top five trends influencing organisational prosperity over the next three-years are technology-driven. These include cybercrime and cyber insecurity, AI workforce readiness, successful integration of AI into business processes, and competition for AI talent.
Moreover, a significant share of CEOs in India identifies the integration of AI into organisational processes and systems as their most pressing challenge shaping short-term decision-making. This concern resonates globally as well, where technology-related factors-such as cybercrime, AI workforce readiness, and successful AI integration-consistently rank among the top factors impacting an organisation’s three-year growth
This finding marks a subtle shift from 2024’s top five trends, when most CEOs in India believed that cost of living and trade regulations would significantly impact organisational growth over the next three years. In contrast, fewer CEOs in India then had cited cybercrime and generative AI to have a major impact on their organisations.
In 2025, beyond technology, CEOs in India and globally identify rising costs and inflationary pressures as key impediments to their organisation’s growth prospects. Meanwhile, global economic uncertainty and regulatory pressures continue to pose significant challenges, impacting short-term decision making.
Identifying investment priorities to mitigate risks
In response to the intensifying pressures posed by advanced and emerging technologies, CEOs in India and globally have identified a few strategic investments and operational priorities aimed at mitigating business risks over the next three years. Cybersecurity and digital risks resilience has emerged as the foremost investment priority, cited by 42 per cent of CEOs in India and 39 per cent CEOs globally, underscoring the growing imperative to safeguard digital infrastructure and ensure operational continuity. The integration of AI into operations follows closely with 32 per cent CEOs in India and 34 per cent CEOs globally prioritising it.
Changing leadership capabilities amidst uncertainty
Owing to the emerging risks, it is evident that navigating today’s complex business landscape requires more than technological preparedness and CEOs, both India and globally, believe that there are a few leadership capabilities that are critical in the current prevailing unpredictable environment.
While there is no clear consensus on any single most critical leadership skill, 31 per cent of CEOs in India, compared to 26 per cent CEOs globally, emphasise greater agility and faster decision-making under pressure as one of the key leadership capabilities
Furthermore, CEOs in India identify greater regulatory understanding as the second most critical leadership capability, compared to it being ranked fourth globally. This highlights the relatively higher emphasis placed by CEOs in India on regulatory acumen, suggesting the need to stay attuned with evolving compliance requirements.
Meanwhile, CEOs globally (24 per cent) have placed relatively higher emphasis on increased transparency in communication compared to 18 per cent CEOs in India, underscoring the value of open dialogue in fostering trust and alignment across increasingly distributed and diverse teams.
Technology and AI
CEOs in India forge ahead with AI investment and adoption while balancing risk
AI continues to be a growth engine fuelling insight and action
As technological disruption accelerates, CEOs are placing AI at the forefront of their strategic priorities. Accordingly, a majority of CEOs in India and globally have highlighted that AI is a top investment priority for their organisation. The sustained importance of AI is further underscored by the fact that about 57 per cent of CEOs in India, compared to 69 per cent of CEOs globally are planning to allocate 10–20 per cent of their budgets to AI over the upcoming 12 months. Supporting this investment outlook, a majority of CEOs (73 per cent CEOs in India compared to 67 per cent CEOs globally) believe that returns on investment (ROI) from AI will materialise within one to three years.
This strategic focus is driven by the tangible benefits AI is expected to deliver. CEOs in India and globally view enhanced decision-making and data analysis capabilities as the most valuable advantages of AI adoption. Reflecting this sentiment, 23 per cent CEOs in India and 19 per cent of CEOs globally identify these capabilities as the top benefits of implementing AI within their organisations. Other benefits such as increased efficiency and productivity through automating routine operations, improved fraud detection and enhanced cyber-attack response are considered important by business leaders both India and globally.
CEOs in India confident about readiness to embrace AI
Reflecting the optimism in AI’s potential, leadership teams are demonstrating strong strategic readiness. Nearly 78 per cent of CEOs in India compared to 83 per cent CEOs globally are confident of their leadership teams’ clarity on the benefits of AI and the competitive edge it renders.
Additionally, 78 per cent CEOs in India and 79 per cent CEOs globally cite that their leadership has a clear view on how AI will disrupt their business models and create new opportunities.
Furthermore, 86 per cent of CEOs in India and 89 per cent CEOs globally believe their boards are well-equipped to navigate the adoption of advanced technologies, including leveraging data and AI to drive sustainable business growth.
Despite readiness, the implementation of AI and its regulatory aspects remain a concern
Despite the benefits and preparedness of CEOs in deploying AI, CEOs in India like their global counterparts highlight that implementing AI presents significant challenges.
Among these, ethical concerns stand out as one of the most pressing issues, with 62 per cent of CEOs in India, compared to 59 per cent globally, identifying it as a major barrier to successful AI adoption. The lack of clear AI regulations further exacerbates these challenges. This is reflected in the fact that 76 per cent of CEOs in India, alongside 69 per cent CEOs globally, express apprehension about the pace at which AI regulations are evolving.
In addition to ethical and regulatory challenges, CEOs in India point to technical barriers such as insufficient data readiness (53 per cent CEOs in India compared to 52 per cent CEOs globally) and the lack of specialised skills and capabilities (46 per cent CEOs in India compared to 48 per cent CEOs globally) to implement AI as other critical challenges.
Risks to cybersecurity escalate, but CEOs in India focus on long-term digital resilience
Cybersecurity has emerged as a critical concern for CEOs in India, significantly influencing their short-term strategic priorities, as highlighted by 29 per cent CEOs in India and 23 per cent CEOs globally. Additionally, 75 per cent CEOs in India and 79 per cent CEOs globally believe cybercrime and cyber insecurity to impact their organisation’s prosperity over the next three years.
This concern is further coupled with a broad range of technological risks that are increasingly threatening cybersecurity within their organisations. Among these risks, identity theft and data privacy stand out as the most pressing risks, recognised by 89 per cent of CEOs in India and 93 per cent of CEOs globally.
In response to these growing cybersecurity risks, CEOs in India are emphasising the urgent need to build resilient digital defences. Reflecting this priority, a significant share of CEOs in India and globally have increased their investments in cybersecurity to effectively mitigate these threats.
Talent
Adopting workforce strategies with emerging business needs
CEOs in India reshape roles and talent to unlock AI potential amid skill gaps
As organisations increasingly embed AI into their operations, its impact on the workforce has come to the forefront. A significant majority - 74 per cent CEOs in India and 77 per cent CEOs globally recognise that AI workforce readiness is expected to significantly influence their organisation’s prosperity over the next three years. At the same time 68 percent CEOs in India compared to 70 per cent CEOs globally agree that competition for AI talent could constrain their company’s future prosperity.
However, building a future-ready workforce presents notable challenges. 34 per cent CEOs in India compared to 32 per cent CEOs globally identify bridging the gap between existing workforce skills and the capabilities required for AI adoption as a major hurdle in attracting and retaining digital talent. Additionally, 26 per cent CEOs in India compared to 27 per cent CEOs globally cite difficulty in finding candidates with the right mix of technical proficiency and collaborative skills, both essential for successful AI implementation. Meanwhile, the integration of AI is prompting a strategic rethink in employee training, with 73 per cent CEOs in India and 79 CEOs globally acknowledging the need to reassess how they train their employees.
To navigate the disruptions and uncertainties caused by these challenges, CEOs in India and globally are adopting diverse approaches to build a workforce capable of effectively adopting AI. These include, investing in reskilling and upskilling programmes for impacted roles, redeploying employees into new, AI-supported positions and openly communicating with employees about the potential impact of AI on their roles.
CEOs both in India and globally are actively modifying their long-term workforce strategy to align with AI requirements. Retaining and re-training high-potential talent, along with redesigning roles and career paths to foster effective human-AI collaboration, are among the top strategic workforce priorities.
ESG and climate change requirements demand relevant expertise
Beyond technological advancements, the rising urgency around sustainability and net-zero goals is reshaping workforce and skill priorities. As a result, organisations are now confronting critical questions about workforce readiness and skill gaps. Notably, 20 per cent CEOs in India and 21 per cent of CEOs globally believe that a lack of skills and expertise to successfully implement climate solutions is one of the most significant barriers to achieving their climate ambitions.
To address these challenges, 91 per cent CEOs in India and 84 per cent CEOs globally believe that organisations should invest in skill development and lifelong learning in communities to safeguard access to future talent.
ESG
CEOs in India indicate rising confidence in meeting climate targets
ESG readiness fuels CEO confidence in net zero targets
As ESG gains momentum across boardrooms, CEOs are closely observing their organisations’ readiness to deliver on sustainability commitments. This includes evaluating their ability to navigate complex regulatory and political environments, an area where 94 per cent CEOs in India and 89 per cent CEOs globally express confidence.
Building on this optimism, CEOs in India are now re-evaluating their approach to ESG amid prevailing geopolitical and regulatory complexities, as well as internal challenges. CEOs, both India and globally cite prioritising compliance and reporting standards to meet evolving regulatory demands (47 per cent CEOs in India compared to 51 per cent CEOs globally), along with aligning sustainability goals with core business strategy (42 per cent CEOs in India compared to 44 per cent globally), as their commonly preferred approaches.
This proactive stance towards ESG has likely contributed to the growing confidence among CEOs in achieving net zero targets by 2030, as evident in a significant surge from last year both across India and globally.
Boosting the potential of AI to drive the impact of ESG initiatives
AI is increasingly being recognised not just as a tool, but as an enabler of sustainable growth. This transformation is evident in the recent survey insights. Nearly 77 per cent CEO s in India, in alignment with 78 per cent CEOs globally, consider AI instrumental in reducing emissions and enhancing energy efficiency.
Beyond operational efficiency, AI is being recognised for its role in improving the quality of sustainability-related data and its reporting, a critical factor to track progress and enable informed decision-making. About 75 per cent CEOs in India, compared to 79 per cent CEOs globally, agree that AI can support their organisations in this area.
Therefore, to expedite energy transition, business leaders are approaching innovation in diverse ways. In India, 54 per cent CEOs, compared to 49 per cent CEOs globally, mention that they are focused on collaborating and forming partnerships to drive innovation in the sustainability space while adhering to regulatory requirements. Meanwhile, 50 per cent CEOs in India compared to 53 per cent CEOs globally cite that they are engaging with policymakers to stay ahead of potential regulatory changes affecting their innovation strategies.
In contrast to the strategies outlined above, 50 per cent of CEOs in India and 39 per cent of CEOs globally have indicated a preference for a conservative approach to innovation, opting to wait for greater regulatory clarity. This blend of perspectives suggests that CEOs - both in India and worldwide - are approaching innovation opportunities with deliberate caution, prioritising regulatory alignment before making bold moves.
Exploring opportunities for growth
Technology and AI
Talent
ESG
Methodology
About KPMG’s CEO Outlook
The eleventh edition of KPMG CEO Outlook, conducted with 1,350 CEOs of which 125 were from India, between 05 August 2025 and 10 September 2025, provides unique insights into the mindset, strategies, and planning tactics of CEOs.
All respondents have annual revenues of over USD500 million and one third of the companies surveyed have more than USD10 billion in annual revenue. The survey included leaders from eleven markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK, and US) and eleven key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).
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