While the government is working on making doing business easier in India, chief executives of companies have several concerns. A KPMG survey found out what 125 Indian CEOs are worried about the most.
Customer loyalty, new technologies, staying ahead of competition, are amongst the top concerns that is keeping Indian CEOs up at nights, A KPMG survey report titled 'India CEO outlook 2016: Now or Never' said.
KPMG surveyed 125 Indian chief executive officers as a part of its international global CEO outlook survey, to find out the challenges that constantly face Indian CEOs in today's scenario. Chief executives from the banking, financial services, and insurance, manufacturing, energy, technology, infrastructure, life sciences, retail, and telecom sectors were surveyed.
The survey found that nearly 94% of the 125 CEOs surveyed by KPMG, were confident about growth in the Indian economy over the next three years. "Amost 90% expressed optimism about the country's growth over the next year. 63% CEOs feel India is currently at the peak of its development. A majority (94%) of the Indian CEOs are also confident about growth of their own organisations.
54% CEOs said that Indian was the "leading region with great potential for new market growth over the next three years," a view that was echoed by 38% global CEOs.
While the Narendra Modi-led government strives to make doing business easy in India, there are several issues that are giving top executives sleepless nights.
Among the top issues still plaguing the chief executives, are the number of regulations in the country that are inhibiting business growth, the KPMG report said. 92% CEOs said this was an issue.
KPMG India survey report
"A key issue is balance between growth and compliance. We are aggressively growing around the world, and yet are highly concerned about the regulatory and the compliance environments in which we operate," Warren Harris, CEO and Managing Director, Tata Technologies, said.
"Companies are facing the pressures of not only navigating an intense regulatory environment but also finding ways of growing profitable. Given the global expansion and supply chain interdependencies, managing the risk and regulatory landscape is truly going to be a balancing act," Mritunjay Kapur, Partner and Head, Risk Consulting at KPMG India said.
Brand loyalty, or customer loyalty was one of the top issues thanks to the multitude of options available for nearly everything in the market today. Out of the CEOs surveyed, 92% said that they were concerned about the loyalty of their customers, owing to the presence of multiple choices in the market."
KPMG India survey report
92% CEOs also said that "integration of basic automation processed with artificial intelligence and cognitive processes was a concern, along with the same number agreeing that "staying on top of what is next in products and services, was an issue. One of the top concerns, the survey found, for executives over the next three years, is that automation could replace 5% of the workforce, 62% CEOs surveyed, said this. Keeping up-to-date with the latest technologies was a concern for 82% of the CEOs.
"There is a whole new dimension around how CEOs are reinventing the way they use new-age technology concepts such as digital, 3D printing, robotics, cognitive, etc., and build business models around that," Rachna Nath, Partner and Head, Digital Consulting, KPMG in India, said.
KPMG India survey report
Executives also worry about the sheer amount of time that is spent on thinking about disruptions and innovations and the regulations that are inhibiting business growth.
KPMG India survey report
The impact of external fundamentals from the global economy, also worries executives, with 91% saying it was an issue. 81% say that new entrants disrupting their business models, is a concern.
KPMG India survey report
Partner, Strategy and Operations, at KPMG India, S. V. Sukumar, said, "The changing regulatory environment, along with digital and automation opportunities, is likely to compel organisations to look for large scale transformation."
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