75% of CEOs feel low or no impact of war on Indian economy: Survey

As per a survey conducted by a leading Indian publication, around three-fourths of CEOs and business leaders see moderate or no impact on the Indian economy from the Russian invasion of Ukraine.

March 18, 2022

Out of three-fourth CEOs, nearly half of the respondents have predicted an overall economic growth of 15%.

Around 70% of CEOs expect the government to stall fiscal consolidation in order to support growth.

An increase of 5% has been recorded in the price of goods, products and services due to higher input costs and other impacts of the war.

The Indian economy has witnessed sharp capital outflows and currency depreciation, while other prices have been going up.

As per a survey conducted by a leading Indian publication, around three-fourths of CEOs and business leaders see moderate or no impact on the Indian economy from the Russian invasion of Ukraine. In addition, almost half of the respondents have predicted an overall economic growth of 15%. Around 70% of CEOs expect the government to stall fiscal consolidation to support growth, and 60% do not foresee a negative impact on their capital expenditure plans. 

An increase of 5% has been recorded in the price of goods, products, and services due to higher input costs and other impacts of the war. About 32.5% of the respondents expect the prices of goods to rise by 5-10% while 25% expect an increase of more than 10%. The responses that have been recorded are from 40 CEOs across sectors such as manufacturing services and infrastructure. Over three-fourths of the responses received hint towards a GDP growth of about 7-8% in FY23, which is in conjunction with what independent economists also anticipate. On the other hand, 27.5% of the respondents indicate an 8% increase in the economy. 

Due to the Russian invasion of  Ukraine, the global financial markets have been impacted as prices of crude oil and commodities have increased along with a sharp hike in bond yields. The Indian economy has also witnessed sharp capital outflows and currency depreciation, while other commodity prices have been going up. 

CEOs share their viewpoints

According to the CEOs, the decline in the price of crude oil from US$140 per barrel to US$100, along with other commodity prices have helped improve the sentiment. Approximately two-thirds of the responses received want the government to reduce fuel taxes and absorb the expected increases in the prices. 

About 10% of the respondents have indicated that their sectors have been impacted severely due to the war-like situation, while nearly one-third of them have noticed no adverse effects. 

Some of the biggest concerns are around anticipated increase in fuel prices, spike in inflation, higher commodity prices and other input cost