CEOs in India stay optimistic amid tariff tensions and global uncertainty: KPMG Study

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 KPMG Study

NEW DELHI: Despite geopolitical challenges and global uncertainty caused by the twin issues of tariff and technology, CEOs in India remain confident about their organisations’ growth prospects, according to a KPMG study.

The survey, conducted with 1,350 CEOs globally of which 125 were from India between Aug-Sept this year — comes at a time when confidence is being tested by external shocks, particularly US President Donald Trump’s 50% tariff on Indian goods. The optimism, grounded in resilience and strong, adaptive leadership, has strengthened this year, with 83% of CEOs positive about their company’s outlook, up from 68% in 2024, says the KPMG CEO Outlook shared exclusively with TOI. To navigate an increasingly unpredictable environment, CEOs in India and globally agree that certain leadership capabilities are essential. Notably, 31% of CEOs in India — compared to 26% globally — emphasise that greater agility and faster decision-making under pressure are critical to managing the complexities of today’s rapidly evolving business landscape.Elaborating on the findings, Yezdi Nagporewalla CEO, KPMG in India said: “Despite the global uncertainty and disruption, it is reassuring to see CEOs in India remain confident about their organisations’ growth.

This confidence is rooted in a resilient mindset, and a clear understanding of what leadership attributes are required in these firms. As artificial intelligence (AI) and technological disruption accelerate, leaders are becoming more agile, digitally fluent, and responsive to regulatory shifts.

Looking ahead, there is a growing focus on adopting AI, rethinking workforce strategies, and strengthening skill development.

This resilient and forward-looking approach will enable organisations not just to endure change, but to lead through it.”While leaders continue to emphasise the importance of AI and its associated challenges, 81% of CEOs in India cite that AI integration has made them rethink the skills required for entry-level roles — up from 66% in 2024. As AI becomes more embedded in organisations, CEOs are increasing investments and anticipating quicker returns as the technology matures. Hence, AI remains a top investment priority for 65% of CEOs in India (71% globally), and 73% expect to see return on investment within one to three years, compared to 67% globally. Yet regulation remains a key question, and the pace of change is such that no leader can afford to get too comfortable, the study adds. Arun Kohli, Managing Director and Country Head for India at Morgan Stanley says “As the global landscape evolves rapidly, it is essential for businesses to stay nimble.

India’s strong macroeconomic fundamentals, digital ecosystem, and deep talent pool offer a unique advantage. Looking ahead, CEOs must continue to upskill their workforce and balance innovation with risk management as they prepare their organizations for a future shaped by emerging technologies’’.

However, global economic headwinds appear to have weighed on CEO sentiment both in India and worldwide. In India, confidence in the global economic trajectory dropped sharply from 80% in 2024 to 63% in 2025, marking the lowest level observed since 2023.

Globally, 68% of CEOs are confident in the current trajectory of the world economy, down from 72% last year, continuing a long-term trend of declining confidence.Regarding ESG (environmental, social and governance), global confidence in the ability to meet net-zero goals by 2030 has risen significantly, though the sentiment in India remains slightly lower. 56% of CEOs in India are confident about meeting net-zero goals, much lower than the global average of 61%, the survey adds.

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