Indian CEOs more optimistic about globalisation than others: McKinsey survey

Are American executives, who once relished being regarded as bruising street fighters, beginning to have second thoughts about globalisation? Timorous Indian executives, however, who just five years ago appeared to baulk at global competition arriving at their door step, now seem to be more gung-ho about it. This seems to be the finding of the McKinsey Global Survey of Business Confidence 2005.

The confidence of US executives in the US economy has plummeted over the past three months, while the confidence of business leaders overall in the global economy was unchanged: more of those who participated in the McKinsey survey are still upbeat, though by a small margin.

This survey is based on the views of more than 5,800 business leadersfrom 128 countries and was conducted just after Hurricane Katrina hit the US Gulf Coast.

The Indian view:

  • The global survey shows that Indian business leaders are more upbeat than others about the effects of globalisation on their businesses. They are, however, less confident about locating suitable talent.
  • Most Indian executives think that globalisation, increasing affluence in emerging markets, and other global trends would enhance their profits.
  • India is looking to the United States for much of the expected growth and virtually ignoring China.

Significant shifts have taken place at the regional level — Chinese executives and those in other developing markets (with the exception of India) also reported declining confidence in their country's economy.