Only 24% of Indian leaders feel ready for geopolitical challenges: Kroll survey

New Delhi: Only 24% of Indian business leaders feel very prepared to address upcoming geopolitical challenges, according to Kroll’s 2025 Global Business Sentiment Survey. The figure places India behind all other Asia-Pacific (APAC) countries surveyed and below the global average of 32%.

The survey, which included responses from leaders in Australia, China, Hong Kong, India, Japan and Singapore, found that India trails the regional average of 30% in terms of overall business preparedness. The report outlines significant concerns for Indian firms, ranging from cybersecurity and AI integration to regulatory changes and economic instability.

Less than a quarter of respondents in India expressed strong confidence in tackling geopolitical issues. The concerns cited include tariffs, technology controls, cybercrime, supply chain disruptions, regulatory changes and workforce migration.

Over half of Indian respondents (56%) said their level of preparedness for the year ahead was either unchanged or lower than in the previous year. Financial outlook was also muted, with only 24% saying they felt very prepared to deal with upcoming budgetary challenges. About 28% expressed confidence in managing debt service and financial risk — a figure in line with Australia but lower than other APAC peers.

The most common reason for confidence among those who felt prepared was financial stability (47%), followed by having a skilled workforce (26%). However, India recorded the lowest overall confidence in financial health across the region, with nearly half (48%) noting that the situation had either worsened or remained unchanged compared to a year ago.

India, along with Australia, also reported the highest percentage of companies considering restructuring in the coming year (24%), above the regional and global averages of 18%.

Cybersecurity and AI were tied as the top challenges facing Indian businesses in 2025, with 44% of respondents highlighting them as major concerns. Cybersecurity incidents have risen significantly in the past year, with 68% noting an increase in threats. Malware and website breaches were identified as the most pressing issues, each cited by 54% of respondents.

Only 28% of Indian respondents felt very prepared to address cybersecurity challenges, putting the country second to last in the region, just ahead of Hong Kong and level with Australia.

Readiness for AI adoption is also limited. About one in four Indian leaders said they felt very prepared to implement AI across business functions. While this is comparable to Australia, it is lower than most other APAC markets, excluding Hong Kong. India also reports the lowest level of AI integration across functions (88% compared to a 95% regional average), with particularly low penetration in IT applications (44% compared to the 52% average).

“Rapid-fire events are reshaping the global economy and jolting the business environment in real time. Add in escalating political tensions, growing cybersecurity threats, and accelerating AI advancements, and it’s clear that 2025 has already delivered unprecedented challenges for even the most seasoned global business leaders,” said Tarun Bhatia, Managing Director and Co-Head APAC, Investigations Diligence and Compliance, Kroll.

“Additionally, the weaponizing of tariffs have many companies concerned about the impact on their businesses, including around valuation, supply chain, locational strategies, cost optimisation, compliance, and investment or divestment considerations,” he added.