94 Percent of Indian CFOs bullish on nation's economic future, reveals Deloitte Survey

According to the Deloitte Asia Pacific (APAC) CFO Survey 2023, 94 percent of Indian Chief Financial Officers (CFOs) express confidence in the nation's economic future, showcasing resilience amid global uncertainties and displaying the highest optimism across the APAC region. In contrast, only 30 percent of Asian CFOs share this optimism, emphasizing India's standout financial leadership.

The report, titled "The Next Set of Imperatives for CFOs in the Asia-Pacific Region," sheds light on the perspectives of 276 leading CFOs in the region, highlighting their responses to the near-term business landscape characterized by economic fluctuations, slowing growth, surging inflation, and elevated interest rates.

Indian CFOs not only lead in economic confidence but also exhibit a remarkable sense of optimism regarding their companies' financial prospects, with 85 percent demonstrating some degree of optimism. Indian CFOs surpass their counterparts in Australia and Japan, where the sentiment is more neutral.

The survey unveils the top external risks concerning Indian CFOs, with the global economic slowdown or recession (59 percent), geopolitical issues (53 percent), and digital and technology disruption (27 percent) taking the lead. Internally, securing and retaining talent (59 percent), disruption in products or markets (41 percent), and technology implementation/digital disruption (35 percent) are identified as key risks.

Porus Doctor, Asia Pacific CFO Program Leader and Partner at Deloitte India, noted, "Indian CFOs, in particular, are at the forefront, demonstrating a proactive willingness to embrace technology for the transformation of the finance domain."

The report highlights a transformative shift in the role of CFOs. About 86 percent of Indian CFOs feel that their responsibilities have broadened over the past two years, with 84 percent stating they are expected to lead transformative initiatives within their organizations.

CFOs across the Asia-Pacific region differ in their risk management approaches. While 78 percent of Indian CFOs prioritize technology automation to minimize risks, counterparts in Australia, China, and Japan focus on managing costs, improving monitoring of operational procedures, and monitoring portfolios and investment decisions, respectively.

Nandita Pai, Partner and CFO Program Leader at Deloitte India, remarked, "The landscape of the Indian CFO is undergoing a transformative shift, transcending conventional financial oversight to emerge as pioneers in strategic agility and digital innovation."

Key business priorities across the Asia-Pacific region over the next 12 months include revenue growth (62 percent), cost control (56 percent), and productivity improvement (37 percent). In India, revenue growth (73 percent), cost control (47 percent), and productivity improvement (37 percent) remain the top three priorities.

As climate change becomes an urgent challenge, 61 percent of Indian CFOs agree that climate and sustainability regulations will impact their financial reporting. The survey indicates a proactive stance by Indian CFOs, with 59 percent planning to implement necessary processes in the future and 37 percent having already implemented them to comply with climate requirements.

In terms of proactive sustainability initiatives, Indian CFOs lead in adopting public policy positions promoting sustainability (65 percent), requiring suppliers and partners to meet environmental sustainability criteria (53 percent), and using more sustainable materials (55 percent).

The Deloitte survey underscores the dynamic landscape for CFOs in India, positioning them not only as custodians of financial prudence but also as pivotal architects of comprehensive business strategy and sustainability initiatives.