Davos: India has emerged as the fifth most attractive market for investments and the optimism over global economic growth is at a record level, a survey of CEOs by global consultancy PwC said today.
The findings come on a day when the rich and powerful are meeting here for the World Economic Forum’s (WEF) annual summit starting today.
“The US remains the top spot for global investment, while India moves into the top 5,” PwC’s 21st CEO Survey said, adding that there are surprising faith and optimism among chief executives in the economic and business environment worldwide, at least over the next 12 months.
Around 46% of global CEOs consider the US as one of the three most important countries for growth, followed by China (33%) and Germany (20%) at second and third places, respectively.
“India (9%) bumps Japan (8%) as the fifth most attractive market in 2018,” it noted.
PwC India Chairman Shyamal Mukherjee said backed by definitive structural reforms, the India story has been looking better in the past one year.
Notwithstanding the optimism in the global economy, 40% of CEOs are ‘extremely concerned’ about geopolitical uncertainty and cyber threats while 41% feel so about terrorism.
Other factors for concerns are the availability of key skills (38%) and populism (35%).
“These threats outpace familiar concerns about business growth prospects such as exchange rate volatility (29%) and changing consumer behaviour (26%),” the survey said.
Further, terrorism is seen as among the top ten threats to growth whereas only 20% felt so in 2017.
“The threat of over-regulation remains the top concern for CEOs (42% extremely concerned), and over a third (36%) remain concerned about an increasing tax burden,” it added.
PwC conducted 1,293 interviews with CEOs spread across 85 countries between August and November 2017. Besides, the sample is weighted by national GDP to ensure that CEOs’ views are fairly represented across all major countries.
As many as 40% of the companies had revenues of at least USD 1 billion and 35% of firms’ revenues ranged between $100 million and $1 billion. Around 20% of the companies had revenues of up to $100 million while 56% of the entities were privately owned.