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India Inc Fears Market Disruptions Despite 7.4% Growth, Cyber Risks Top Survey

A new FICCI-EY survey reveals that despite India's projected 7.4% economic growth, a majority of business leaders are concerned about domestic market disruptions. Cybersecurity breaches are ranked as the top performance threat by over half of Indian companies, followed by changing customer demands and geopolitical events. The report highlights that technology risks, rapid digital change, and poor handling of AI-related ethics are directly impacting competitiveness. Executives also report significant worries about converging risks, including supply chain disruptions, climate change, talent shortages, and regulatory changes.

Key Points: India Growth Survey: 68% Leaders Fear Market Disruptions

  • 68% fear domestic market disruptions
  • 61% cite cyber-attacks as top threat
  • 63% worried about geopolitical tensions
  • 60% say slow AI adoption hinders operations
2 min read

India Inc fear market disruptions despite strong growth, FICCI-EY Survey finds

FICCI-EY survey finds 68% of Indian leaders fear domestic market disruptions despite strong growth, with cyber-attacks and AI adoption as top risks.

India Inc fear market disruptions despite strong growth, FICCI-EY Survey finds
"In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. - Rajeev Sharma"

New Delhi, February 8

The FICCI-EY Risk Survey 2026 reveals that while India's economy is projected to grow by 7.4 per cent, 68 per cent of leaders fear domestic market disruptions. Top risks include cyber-attacks at 61 per cent and geopolitical tensions at 63 per cent, which are forcing a shift toward supply chain resilience. Additionally, 60 per cent of executives worry that slow AI adoption will hinder operational effectiveness, while 64 per cent report talent shortages.

The new report, titled "Risk outlook - A compass to India's risk landscape," shows that 51 per cent of Indian companies now rank cybersecurity breaches as the top threat to their performance. Other major concerns include changing customer demands at 49 per cent and geopolitical events at 48 per cent.

The report highlights that technology risks are now directly linked to how well a business can keep running. About 61 per cent of leaders say that rapid digital changes are hurting their competitive edge. Furthermore, 54 per cent of respondents feel that risks related to AI, such as ethics and rules, are not being handled well.

Rajeev Sharma, Chair of the FICCI Committee on Corporate Security & DRR, explained that companies must learn to adapt to these risks to grow. He said, "In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. The report indicates that organisations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making, governance structures and long-term planning."

The survey also points out that risks are starting to overlap. For example, 54 per cent of executives are worried about supply chain disruptions, while 45 per cent see climate change as a critical financial risk.

Sudhakar Rajendran, Risk Consulting Leader at EY India, noted that leaders must look at these problems together rather than separately. He said, "Organizations are navigating a phase where multiple risks are converging rather than occurring in isolation. Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc's performance and resilience."

The report also discusses a major gap in talent and rules. About 64 per cent of leaders believe that a lack of skilled workers will hurt their performance, and 67 per cent agree that regulatory changes need to be addressed.

- ANI

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Reader Comments

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Priya S
The talent shortage number (64%) is worrying but not surprising. Our education system needs to catch up with industry needs, especially in AI and cybersecurity. Companies also need to invest more in upskilling their current employees.
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Aman W
Geopolitical tensions affecting supply chains is a big concern. We saw it during COVID and recent global conflicts. 'Atmanirbhar Bharat' is the right direction, but we need to build resilience faster. Can't rely on unstable global trade routes.
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Sarah B
Interesting to see climate change as a financial risk (45%). With our long coastline and agriculture-dependent sectors, Indian companies are very exposed. Hope this pushes more sustainable business practices.
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Vikram M
While the concerns are valid, I feel there's a bit of fear-mongering. Indian businesses have always been resilient and adaptable. Jugaad is in our DNA! We'll navigate these risks like we always have. The growth story is still strong. 💪
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Kavya N
The slow AI adoption point is crucial. We can't afford to lag behind. It's not just about buying tech, but about changing mindsets and having clear ethical guidelines. Otherwise, we'll be playing catch-up forever.
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David E

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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