KPMG survey shows 66% CEOs in India foresee recession in 12 months

Around 66% of chief executive officers in India foresee a recession in the next 12 months compared to 86% CEOs globally, the KPMG 2022 India CEO Outlook survey found. Around 58% of CEOs in India and globally feel that the recession will be mild and short with 55% of CEOs in India formulating plans to tackle it.

Despite geopolitical and economic challenges, the confidence of CEOs in India and the global economy rose to 57% in August from 52% in February this year.

CEOs in India are relatively less worried about concerns regarding recession and its various aspects that could impact their business. Despite foreseeing a decline in growth prospects, when it comes to company and country, they seem resilient enough to bounce back in the short-term, the survey shows.

Eighty-two percent of CEOs in India are confident in the resilience of the global economy in the short term, while the long-term growth outlook is yet to bounce back.

Fatigue from the pandemic, economic factors, including the threat of rising interest rates, inflation and anticipated recession and reputational risk, are among the most pressing concerns, they feel.
Geopolitical uncertainties will continue to impact strategies and supply chains over the next three years, they indicate.

Around three-fourths of CEOs in India compared to 81 per cent of CEOs globally have adjusted or plan to adjust their risk management procedures considering geopolitical risk, and close to a fifth of CEOs in India as well as globally will be increasing measures to adapt to geopolitical issues to achieve their growth objectives, the survey report added.