15th Annual Global CEO Survey
55%
India CEOs are 'very confident' about their company's growth prospects (as compared to 40% globally) in the next 12 months.
15th Annual CEO Survey
India focus
India focus
The Indian economic outlook for 2012 is of sustained market opportunity even as global economic growth looks patchy and financial markets remain volatile.
Deepak Kapoor, Chairman, PwC India and Bharti Gupta Ramola, Markets Leader highlight the key findings of the survey and answer questions that the 15th PwC Global Annual CEO Survey has raised.
Key findings
Capitalising on changing demographics and consumer preferences
India’s growth will remain dependent largely on domestic consumption. However, the profile of the Indian consumer is changing because of rapid urbanisation, changing preferences due to rise in income and a young workforce. Besides, a new consuming class is pushing its way up from the bottom of the pyramid and is flexing its buying power. There will be winners and losers as businesses pivot to address markets and customers they are less familiar with.
India’s growth will remain dependent largely on domestic consumption. However, the profile of the Indian consumer is changing because of rapid urbanisation, changing preferences due to rise in income and a young workforce. Besides, a new consuming class is pushing its way up from the bottom of the pyramid and is flexing its buying power. There will be winners and losers as businesses pivot to address markets and customers they are less familiar with.
38% of CEOs from India site increase share in existing markets as a major opportunity over the next 12 monthsManaging domestic risk: Regulation, governance, and corruption
CEOs from India are particularly concerned about regulatory uncertainty and the increasing cost of compliance. On one hand, regulation is extensive, and on the other, key economic reforms required to support domestic growth are being postponed. The discussion on corruption and lack of governance in high places dominated headlines throughout 2011. It may feel as if macroeconomic environment risks are multiplying for stakeholders in Indian businesses. CEOs are spending considerable time in managing these stakeholder concerns.
CEOs from India are particularly concerned about regulatory uncertainty and the increasing cost of compliance. On one hand, regulation is extensive, and on the other, key economic reforms required to support domestic growth are being postponed. The discussion on corruption and lack of governance in high places dominated headlines throughout 2011. It may feel as if macroeconomic environment risks are multiplying for stakeholders in Indian businesses. CEOs are spending considerable time in managing these stakeholder concerns.
42% of CEOs from India are prioritising spending time with the shareholdersDeveloping global talent
Compared to their global peers, CEOs from India are less concerned about the availability of talent in spite of the widely acknowledged skills gaps in the country. We find that they are taking charge by heavily investing in developing in-house talent, instead of waiting for a systemic change. They are also making technology investments to bridge skill gaps that will become more pertinent in the long run.
Compared to their global peers, CEOs from India are less concerned about the availability of talent in spite of the widely acknowledged skills gaps in the country. We find that they are taking charge by heavily investing in developing in-house talent, instead of waiting for a systemic change. They are also making technology investments to bridge skill gaps that will become more pertinent in the long run.
79% of CEOs from India are investing in formal educations systemsInterview quotes from CEOs
Dimitrios Papalexopoulos
CEO, TITAN Cement SA, Greece
CEO, TITAN Cement SA, Greece
The emergence of a middle-class in India and in China is going to be a huge stimulus for the global economy over the next 20 years. Additionally, emerging technological advances – whether in the digital domain, biotechnology,or any number of fields – still have a long way to go before their full positive effect on the economy is felt. So I am concerned about the next two or three years, but optimistic over the long-term.
Richard O’Brien
President and CEO, Newmont Mining Corporation, US
President and CEO, Newmont Mining Corporation, US
Last year’s BP oil spill in the Gulf of Mexico has led many companies to re-ask the question-Is enterprise risk management one of those unfortunate check the-box activities that every company should be doing because people tell us we should, or is it one that we embrace?
Baba Kalyani
Chairman and Managing Director, Bharat Forge Ltd, India
Chairman and Managing Director, Bharat Forge Ltd, India
Talent is the most strategic issue for a country like India. The country is tremendously short on talent. Attrition rates are in double digits.There is a gap between what comes out of technical institutes and what the industry needs.
Contacts
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Bharti Gupta Ramola Markets Leader Tel: +91 124 3306355 |
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Shashank Tripathi India Strategy Leader Tel: +91 22 66691002 |
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Arup Mazumdar Senior Consultant Tel:+91 99305 88938 |
