31 March 2025: 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, India Findings released today. 90% of Indian CEOs believe that investments in existing operations and new areas through joint ventures and mergers & acquisitions are critical for growth. While all of them are very optimistic that they can successfully reimagine their business model for the future through transformation.
The EY survey also finds that 86% CEOs recognize the pivotal role of emerging technologies, marking them as a key investment priority for the next 12 months, while 90% believe successful AI adoption and workforce upskilling will define industry leaders. This forward-thinking approach underscores the resilience and adaptability of Indian businesses, with transformation at the heart of their ambitions.
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 to shape their future with confidence. The EY survey reveals that the most confident CEOs prioritize enduring transformation strategies, focusing on strengthening relationships with customers and employees amid macroeconomic and technological shifts.”
The EY survey highlights that strategic vision and investment in people – including upskilling employees to keep pace with technological innovation – are considered essential levers for growth. 20% of CEOs said improving customer engagement and retention is the first priority, followed by 18% who said improving employee engagement and retention. 16% said reducing costs and unlocking savings, and 14% stated that enhancing product and process innovation can improve current offerings and create new products and services.
Anurag Gupta, Partner and National Leader, EY-Parthenon India added, “Adaptability is the key advantage for organizations in India today. Those who embrace transformation can turn disruption into opportunity, constantly learning, evolving, and confidently shaping their future. According to the EY survey, 42% of Indian CEOs are confident on optimizing operations and boosting productivity, including through digitalization, while 67% 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.”
CEOs Bullish on M&A: Tech-Driven Strategies Fuel Optimistic Outlook
Unlike their global counterparts, Indian business leaders are displaying strong optimism, with 90% 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.”
Despite the optimism and plans for more deals, 96% CEOs identify escalating geopolitical instability and uncertainty as their primary concern, highlighting the significant impact of global political dynamics on business operations and strategic planning. 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.