60% of Indian CEOs plan to increase growth investments: Arthur D Little

• 33% of the Indian CEOs surveyed had an optimistic view about the economic outlook over the next 3-5 years.
  
• 60% of Indian CEOs intend to increase spending, and 33% aim to maintain spending levels.
  
• Globally, 60% CEOs want to explore new technologies, and 27% believe the metaverse and VR will impact their business.
  
  

When the going gets tough, the tough gets going. Despite economic challenges and dark macroeconomic predictions for 2023, India’s top CEOs are targeting growth through investments and innovation, rather than retreating into their shells and focusing on cost-cutting strategies, as per a study by consultancy Arthur D Little.

Arthur D. Little’s 2023 CEO Insights study spoke to nearly 250 CEOs from companies with turnover of more than $1 billion, including 21 CEOs from India.

‘A new generation of ambidextrous Indian CEOs’

The current economic crisis triggered a tsunami of challenges across industries. Businesses have seen a large-scale drop in customer demand, while input costs, especially for energy, have skyrocketed. Combined with serious strains and breakdowns in supply chains, it has led many commentators to predict the end of globalization as we know it.

However, most Indian CEOs are optimistic for the future, with nearly two-thirds (62%) expecting a stable or positive global economic outlook over the next three to five years.

Says Barnik Chitran Maitra, managing partner, Arthur D Little India & South Asia, “Our research reveals that Indian CEOs are more optimistic about the future than their global counterparts. We are certain that this new generation of ambidextrous Indian CEOs and companies can potentially become national and global champions.”

When facing a downturn, conventional business wisdom is to cut costs, focus on the core business, and aim to ride out the recession. However, 60% of Indian CEOs intend to increase spending and 33% aim to maintain spending levels as they anticipate growth. As many as 75% of Indian CEOs are looking to beat or meet market growth.

ESG: A source of competitive advantage

According to the study, CEOs globally are focusing on technology innovation to drive growth. They are contemplating the future with open minds.

While 60% want to explore new technologies, 27% believe the metaverse and virtual reality (VR) will impact their business. They are monitoring and piloting these technologies now, preparing to exploit opportunities once they mature.

The study findings also reveal that ESG is becoming a full part of the CEO agenda globally. It is seen as an opportunity rather than a threat.

While two-thirds of global CEOs admit they pursue ESG targets and goals for compliance reasons, 80% see it as a source of competitive advantage, with 67% referencing consumer pull as a further reason for pursuing greener, more sustainable strategies.

ESG is also rising in strategic importance, with 41% of CEOs making it a higher priority than other initiatives.

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