Recession In India: 66% Indian CEOs Predict Recession In Next 365 Days (Survey Report)
According to a report by KPMG, 66% CEOs in India expect a recession next year. However, 58% of them believe that the economic downturn will be mild and short.
As per KPMG in 2022 India CEO Outlook, the major concerns faced by the CEOs include pandemic fatigue, economic factors like the threat of rising interest rates, inflation, anticipated recession, and reputational risk.
66% Indian CEOs Anticipate Recession Next Year
As compared to the 86% of global CEOs, 66% Indian CEOs are anticipating a recession over the next 12 months.
90% of business leaders in India predict 10 per cent hit on company earnings.
62% of the CEOs believe that a recession will upend anticipated growth compared to 73% globally.
More than 125 CEOs in India were covered in the survey, and they spoke about their strategies and outlook. The study also revealed that senior executives in India as well as globally also feel markedly more confident about the resilience of the global economy over the next six months (82 per cent CEOs in India compared to 73 percent CEOs globally) than they did in February 2022 (40 percent CEOs in India compared 60 per cent CEOs globally), when KPMG surveyed 500 CEOs for its CEO Outlook Pulse survey.
Agility of Response of Business Leaders To be Tested
The CEO of KPMG India, Yezdi Nagporewalla said that the magnitude of challenges like business ecosystem, supply chain or talent crunch has altered dramatically and what matters is how agile business leaders are to respond.
He said that “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”.
In some countries in Europe, the global agencies like IMF and World Bank have already warned of a recession.
In its latest report, the IMF has predicted a slowdown in major economies like US and China, and a recession next year in Germany and Italy.