MUMBAI: A large majority of CEOs in India – 86% – predict that over the next year, recession will impact company earnings by up to 10%. In this year’s KPMG India CEO Outlook, where over 125 CEOs in India discussed their strategies, 66% anticipate a recession to hit over the next year, but 58% leaders expect the recession to be “mild and short”.
According to the findings, 62% CEOs in India believe that a recession will upend anticipated growth, with around one-third of the CEOs saying their companies have also implemented a hiring freeze. However, taking a longer-term view, 79% CEOs expect their organisation headcount to increase over the next three years.
“Be it the business ecosystem, or supply chain or issues pertaining to talent, the nature and magnitude of these challenges has altered dramatically and what matters is how agile business leaders are to respond. CEOs in India surveyed appear confident in their organisation’s resilience, they also seem to have prepared themselves to make the most of the current environment, brought on by the promise of technology, talent and ESG,” said Yezdi Nagporewalla, CEO, KPMG in India.
Senior executives in India exude more confidence about the resilience of the global economy over the next six months (82% CEOs in India compared to 73% CEOs globally) than they did in February 2022 (40% CEOs in India as against 60% CEOs globally), when KPMG surveyed 500 CEOs for its CEO Outlook Pulse survey.
Sunil Kataria, CEO of
‘s Lifestyle Business, said, the resilience of Indian businesses have increased significantly with respect to any global macro factors as the Covid shock served as a detox for all businesses and led to weeding out of cost inefficiencies, creation of more optimal future practices and processes like adoption of digital technologies, and identification of new vectors of growth that can balance out core business models.