India is on track to implement one of the 21st century’s most ambitious infrastructure programs among major economies, according to KPMG’s latest report. The report, titled “KPMG 2024 Infrastructure and Transport CEO Outlook,” highlights the critical importance of generating fiscal sources of capital to drive this initiative.
The comprehensive report, based on a survey of 120 global leaders in the infrastructure and transportation sectors, reveals a positive outlook for business growth over the next three years, encompassing revenue expansion and increased headcount. However, it also underscores significant challenges in adapting to evolving environmental, social, and governance (ESG) expectations. Notably, 57 per cent of surveyed CEOs indicated that stakeholder expectations related to ESG are changing faster than their strategic adjustments can keep pace with.
The report also highlighted that more than half of the CEOs anticipate that a failure in global climate-change adaptation will have tangible impacts on their growth prospects in the near to medium term. This concern adds urgency to the industry’s approach to sustainability and climate resilience.
In a context marked by declining confidence and trust in governments worldwide, 62 per cent of respondents believe the public is increasingly looking to businesses to address societal challenges. Demonstrating a strong commitment to values, 71 per cent of CEOs indicated their willingness to divest profitable segments of their businesses if they were damaging the company’s reputation.
Manish Aggarwal, partner and co-head of deal advisory, as well as head of Infrastructure, Disinvestments, and Special Situations Group at KPMG in India, highlighted that the race to adopt emerging technologies like generative AI (Gen AI) has climbed up the priority list for infrastructure and transport CEOs. “The rapid integration of new technologies is essential as companies align with evolving market demands and ESG goals,” Aggarwal noted.
The 10th edition of the KPMG CEO Outlook, conducted between July 25-29, 2024, gathered insights from 1,325 CEOs across 11 major markets—including India, the US, the UK, Germany, and China—spanning key industry sectors. All participants led companies with annual revenues exceeding USD 500 million, with one-third of respondents representing firms with revenues surpassing USD 10 billion.
The findings present a clear vision: while optimism for growth pre vails, the pathway will require agility, technological advancement, and a strong commitment to ESG principles to navigate the emerging landscape successfully.