What’s spooking India’s top executives in 2024?

Top executives at India Inc. are wary of uncertainties from geopolitical complexities and rapid technological advancements, even as the economic recovery continues, a survey by KPMG showed.

The “2024 India CEO Outlook,” part of KPMG’s tenth annual CEO survey conducted with 1,325 CEOs globally—including 125 from India—showed that CEOs both in India and around the world remain confident in the country’s growth prospects for 2024.

Their steady optimism, mirroring their views from 2023, is encouraging them to explore both organic and inorganic growth opportunities, the survey, which was conducted between 25 July and 29 August, showed.

The confidence of CEOs in India in terms of growth prospects for the global economy over the next three years has risen to 80% in 2024 from 69% in 2023, indicating “renewed optimism and determination in navigating long-term growth trajectories.”

The top concerns for CEOs include rising costs of living, complex trade regulations, cybersecurity threats, and talent shortages.

Half the CEOs in India and globally view the race to embrace and integrate generative artificial intelligence (AI) and other technologies into their organizations as their foremost challenge.

In India, 13% of CEOs, compared to 11% globally, consider emerging and disruptive technologies as one of the biggest threats to their organization’s growth over the next three years.

As fears of technological stagnation grow, CEOs in India are prioritizing digitization and improving connectivity across their businesses. They are also focused on understanding and implementing generative AI, including upskilling their workforce to stay competitive.

Economic uncertainty and geopolitical complexities remain primary concerns for 50% and 43% of CEOs in India, respectively. However, only 6% of CEOs in India, compared to 12% globally, view geopolitics and political uncertainty as a threat to their organization’s growth over the next three years.

66% of CEOs in India, compared to 69% globally, believe generative AI could negatively impact their organization’s prosperity in the next three years. To counter this, they are already adopting strategies to manage these trends and maintain resilience in the face of challenges.

Among other operational priorities, 6% of CEOs in India and globally have focused on reconfiguring supply chains to enhance resilience, transparency, and consistent access to supplies. This move is expected to boost operational efficiency and help organizations adopt new business models that better meet current and future market demands, the survey said.