Indian CEOs second most optimistic in the world, says survey

Davos: Indian CEOs are the second most optimistic in the world when it comes to their companies' growth prospects in the next 12 months and are planning aggressive hiring during the same period, says a survey.

Their bullish outlook contrasts with decline in overall optimism among business chiefs globally, according to the annual CEO survey of global consultancy PwC, released here at the WEF Annual Meeting 2015. "In India, hopes are running high, with reform-minded Prime Minister Narendra Modi now in power," the report said.

At 62 per cent, the number of Indian CEOs who are very confident about their company's growth in the next one year is up 13 per cent from last year and is 23 per cent higher than this year's global average (39 per cent), the survey found.

Besides, 59 per cent of Indian CEOs believe that global economic growth will improve in the next 12 months, the highest across the world and much above the global average of 37 per cent, PwC said. The report said a massive 84 per cent of India's CEOs believe there are more growth opportunities for their company today than three years ago — the highest percentage in the world.

Interestingly, when asked to name the countries most important to them for their growth in the next 12 months: 48 per cent of CEOs in India said it is the US, and 26 per cent said China. Globally, however, CEOs have turned less optimistic about the global economy, although their confidence in growth of their own companies remains stable.

Globally, 37 per cent of CEOs think global economic growth will improve in 2015, down from 44 per cent last year. Significantly, 17 per cent of CEOs globally believe global economic growth will decline, more than twice as many as a year ago (7 per cent). Around 63 per cent of Indian CEOs plan to enter into a new strategic alliance/joint venture, and a high 51 per cent said they are plan to outsource a business process or function.

India's CEOs also believe that there are more threats to the growth of their company today than three years ago. The top potential economic and policy threats highlighted by Indian CEOs are: inadequate basic infrastructure, over -regulation, and government response to fiscal deficit and debt burden.