Most Indian chief executive officers identify a global slowdown as the biggest threat to businesses, with geopolitical risks coming second, as the economy shows signs of a slowdown amid a mix of domestic and international challenges.
A Moneycontrol-Deloitte survey found that at least 67 percent of CEOs feel a global economic slowdown poses the greatest threat to businesses. For around 58 percent of the respondents, intensifying geopolitical risks (US-China, Russia-Ukraine and Central Asia crisis) were the biggest worry, which could severely impact commodity prices.
The survey of 45 CEOs across financial services, consumer goods, technology and energy sectors was conducted between January 10 and January 22.
About 33 percent of respondents said supply-chain disruptions with the rising momentum of re-shoring and “friend-shoring” were their main concern.
At least 31 percent of CEOs were worried about their businesses in the face of trade restrictions imposed by industrial countries. An equal number of respondents said monetary policy uncertainties in the West could be a threat, while 27 percent were worried about high US inflation.
Geopolitical conflicts and uncertainty over trade policies of major economies are among the biggest risks for India, the government's October 2024 economic report said.
“Risks to growth arise from escalating geo-political conflicts, deepening geo-economic fragmentation and elevated valuations in financial markets in some advanced economies," the report said. Spillover from such risks could affect household sentiment in India, altering spending on durable goods in the world's fifth-largest economy, it added.
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