Indian CEOs are more confident than their global counterpart on cost of doing business, revenue and competitive position, according to the latest EY-Parthenon CEO Outlook Survey: Global Confidence Index 2025. At the same time a majority of Indian  CEOs identified  escalating geopolitical instability and uncertainty as their primary concern. 

Nearly 90 per cent of Indian CEOs believe that investments in existing operations and new areas through joint ventures and mergers & acquisitions are critical for growth. 

Nearly 86 per cent of CEOs pointed out that emerging technologies will play a pivotal role and will be a key investment priority for the next 12 months. Nearly 90 per cent believe successful AI adoption and workforce upskilling will be critical.

Rohan Sachdev, Consulting Leader, EY India, said, “Organizations that adopt a transformative mindset can convert upheaval into prospects for growth, consistently adapting and evolving to confidently shape their future with confidence. The EY survey reveals that the most confident CEOs prioritise enduring transformation strategies, focusing on strengthening relationships with customers and employees amid macroeconomic and technological shifts.”

The survey also highlighted that strategic vision and investment in people are considered essential levers for growth. 

“20 per cent of CEOs said improving customer engagement and retention is the first priority, followed by 18 per cent who said improving employee engagement and retention. 16 per cent said reducing costs and unlocking savings, and 14 per cent stated that enhancing product and process innovation can improve current offerings and create new products and services,” the survey findings stated. 

Anurag Gupta, Partner and National Leader, EY-Parthenon India, added, “According to the EY survey, 42 per cent of Indian CEOs are confident on optimizing operations and boosting productivity, including through digitalization, while 67 per cent are radically reimagining their business models to unlock new avenues for creating, delivering, and capturing value. Most CEOs are taking a long-term view of transformation, prioritizing enhanced customer and employee engagement amidst macroeconomic and technological shifts, and placing people at the heart of their strategy for sustainable value creation.”

Unlike their global counterparts, Indian business leaders are displaying strong optimism, with 90 per cent actively exploring strategic transactions in the coming year. Their focus primarily centers on M&A deals (both buy and sell/separate) and joint ventures to optimise operations, drive growth and expand market presence.

Amit Khandelwal, Managing Partner, Strategy and Transactions, EY India, said, “Amidst the unprecedented uncertainties brought in by acceleration of AI / Digital adoption and global geopolitics, businesses that prioritize technology, business transformation and upskilling in their M&A strategies will emerge as winners. AI/Digital-Tech led transformation continues to shape corporate acquisitions, while defensive consolidation enhances operational resilience and cost efficiencies in a volatile economic landscape. With strong balance sheets and financing availability, the case for strategic M&A has never been more compelling in India.”

CEOs who can effectively navigate these complexities and embrace a long-term, transformational mindset are likely to emerge as the market leaders of tomorrow, turning potential threats into strategic advantages.

Published on March 31, 2025