How Indian CEOs are balancing optimism, transformation and resilience

The CEO Outlook Pulse Survey 2025 reveals Indian CEOs are prioritizing AI-driven leadership and workforce upskilling to drive transformation.

In brief

• 88% of Indian CEOs are optimistic about business prospects, though confidence has dipped slightly from 96% in 2024.
• 100% of CEOs are confident in executing business transformation insights, with a strong focus on customer engagement, strategic investment trends and product innovation in India.
• CEO decision-making strategies for 2025 revolve around AI, talent and regulatory shifts.

The EY-Parthenon CEO Outlook Survey January 2025  finds Indian CEOs optimistic about their businesses, though confidence has moderated slightly. The survey, based on insights from 50 Indian CEOs across five industries, explores their corporate growth strategies, transformation initiatives, and key challenges in 2025.

Despite a shift from 96% confidence in the 2024 survey to 88% in 2025, Indian CEOs continue to align closely with their global counterparts (92%), indicating a careful approach towards economic trends in 2025, geopolitical shifts and regulatory uncertainties. Leaders remain committed to long-term growth in India, with a sharp focus on business continuity planning, AI, and market resilience strategies to navigate the evolving landscape.

Key strategic priorities for CEOs in 2025

Indian CEOs are prioritizing workforce upskilling, using AI in executive decisions, and market expansion to navigate 2025. In the survey, 90% of CEOs are prioritizing talent acquisition and retention, which shows a clear recognition that a skilled workforce, particularly in AI and emerging technologies, is essential for future-ready enterprises.

As AI disruption in business reshapes job roles, businesses are actively investing in reskilling and workforce reorientation to ensure employees have the skills for an increasingly automated environment. Along with talent, technology is a key investment area, with organizations upgrading both emerging technologies and existing tech stacks to enhance digital transformation impact and customer engagement. Market expansion is also among priority areas for Indian CEOs, with many CEOs planning strategic investments in India through mergers and acquisitions (M&A) and joint ventures (JVs) to strengthen competitive positioning.

Driving transformation and innovation

The survey underscores that transformation initiatives in 2025 will focus on business risk management, technology-driven growth and operational efficiency. Customer engagement stands out, with 20% of CEOs emphasizing its role in business transformation insights that enhance brand loyalty and driving revenue growth. Employee retention follows closely at 18%, reflecting the growing focus on fostering a dynamic and supportive workplace culture that attracts and retains top talent.

Meanwhile, 16% of CEOs feel transformation initiatives will lead to reduced costs and unlocking savings. Product and process innovation are two other aspects that leaders in India feel are crucial for maintaining a competitive edge, with businesses looking to enhance existing offerings while developing new solutions.

While all CEOs express confidence in executing their transformation goals, sustainability strategy remains a relatively less assured area, with confidence levels at 93%. Digital transformation and operational agility are key focus areas. However, sustainability may present unique challenges that require long-term commitment and strategic interference. 

Accelerating transformation with speed and resilience

Two defining factors in CEO decision-making strategies are speed and resilience. Nearly all CEOs acknowledge the urgency of accelerating transformation cycles to remain competitive in the market. The focus seems to be on ensuring businesses can quickly adapt to economic trends in 2025, market shifts and technological disruptions. Strengthening resilience is equally crucial, as companies strive to build robust business models that can withstand external pressures such as geopolitical uncertainty, supply chain disruptions and changing regulatory landscapes.

At the same time, building market resilience strategies and optimizing return on investment (ROI) remains a top priority, with organizations refining their funding strategies to maximize the financial impact of their transformation initiatives. AI-driven leadership trends are reshaping industries, reinforcing the need for workforce agility and continuous upskilling. CEOs increasingly recognize that how AI is transforming leadership decisions will play a vital role in driving innovation and efficiency.

Managing emerging risks and challenges

As Indian CEOs steer their organizations through an increasingly complex business environment, they are likely to face a range of emerging risks that demand strategic foresight and adaptability. Geopolitical volatility remains a key concern, with global uncertainties and shifting trade policies posing potential disruptions to supply chains and investment flows. At the same time, the rapid evolution of emerging technologies has created talent and capability gaps, making it imperative for businesses to upskill their workforce and secure specialized expertise to drive AI and digital transformation initiatives effectively. 

Another pressing challenge that CEOs highlight is the growing cost of digital transformation, coupled with increasing pressure to demonstrate ROI. While organizations are accelerating AI and tech adoption, justifying expenditures and ensuring sustainable value creation have become critical priorities. CEOs need to strike a balance between innovation and cost optimization to maintain competitive agility. Additionally, the speed and scale of technological disruption continue to reshape industries at an unprecedented pace. Businesses must not only keep up with fast-evolving tech trends but also build resilient digital ecosystems that can swiftly adapt to market shifts. 

As AI adoption accelerates, public trust in the technology remains fragile due to concerns over oversight, safeguards and ethical deployment. The lack of standardized regulations has raised fears of misuse by bad actors, highlighting the need for Responsible AI governance. However, with AI regulations still evolving globally, navigating this landscape remains a challenge.