87% of India CEOs confident of growth despite cyber, geopolitical risks: KPMG

Nearly 87% of CEOs in India are confident about their companies’ growth prospects over the next three years, despite rising cybersecurity threats, geopolitical instability and economic uncertainty, a KPMG report said.

The KPMG 2026 India CEO Outlook, based on responses from 125 CEOs in India, found that cybersecurity and data security were the biggest threats to business growth, cited by 38% of respondents. Global economic uncertainty and geopolitical instability followed at 28% each.

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To address these risks, 49% of CEOs said they were increasing investments in cybersecurity and digital resilience, making it their top risk-management priority.

Despite the uncertainty, 69% of CEOs expect annual earnings growth of more than 2.5% over the next three years, while 92% expect their companies to increase headcount.

AI adoption grows, ethical concerns remain

Artificial intelligence (AI) is a key investment priority for 78% of CEOs in India. However, ethical concerns remain a major hurdle, cited by 64% of respondents, compared with 57% globally.

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Another 53% said integrating AI into cybersecurity systems was a challenge. Despite these concerns, 97% were confident their organisations could keep pace with AI-driven changes in business operations and the workforce.

The report said companies now need to focus on turning AI investments into measurable business gains while strengthening governance, cybersecurity and workforce skills.

Talent shortages biggest challenge

Attracting and retaining employees was the biggest workforce challenge, cited by 54% of CEOs. Skills gaps followed at 53%, while 51% pointed to the need to train employees in AI.

To prepare for these changes, 87% of CEOs said they were focusing on retaining and retraining high-potential employees, while 84% were redesigning roles and team structures to improve collaboration between people and AI.

Sustainability remains priority

About 66% of CEOs said sustainability was integrated into their core business strategy, while 68% were confident of meeting their organisations’ net-zero targets by 2030.

While 84% believed AI could support innovation aligned with climate goals, 97% expressed concern about its environmental footprint.

Yezdi Nagporewalla, CEO of KPMG in India, said companies would need to strengthen cybersecurity, build workforce capabilities and embed trust as they expand investments in AI and digital transformation.