A new survey of European business leaders indicates grow
ing confidence in India’s long-term economic prospects,
while sentiment towards China remains cautious despite some
improvement. The survey, conducted in April among the chief
executives of Europe’s 60 largest non-financial companies by the
Conference Board and the European Round Table for Industry,
highlights shifting business priorities amid an uncertain global
economic environment.
Only 34% of respondents expressed a positive view of China’s
long-term business conditions, while an equal proportion
remained neutral and 23% were negative. Although these
findings suggest a more favourable outlook than previous
surveys, concerns persist regarding regulatory stability, market
openness, and investment attractiveness. Analysts noted that
European companies appear more optimistic about China over a
longer horizon than in the medium term, but enthusiasm
remains limited.
In contrast, India emerged as a preferred destination for future
engagement. Nearly 70% of respondents expressed positive or
very positive views regarding India’s business prospects, while
only 4% held negative perceptions. Furthermore, 58% of CEOs
said the European Union should accord a very high priority to its
relationship with India across areas such as trade, investment,
supply chains, technology, security, climate, and energy
cooperation. This was higher than the corresponding figures for
the United States (53%) and China (42%).
The survey also revealed growing concerns about the global
economy. Two-thirds of respondents believed current economic
conditions had deteriorated, while more than half expected
further weakening over the next six months. Energy security
emerged as the leading concern, particularly in the wake of the
ongoing conflict in the Middle East.
Despite these challenges, confidence in Europe improved
modestly, with 48% of CEOs expressing optimism about
business conditions in the region. However, long-term sentiment
remained subdued, with over 60% viewing Europe’s future
business environment negatively. Many respondents also
doubted the timely completion of the European Union’s single
market reforms. Overall, the findings suggest that while
European businesses remain cautious about global economic
prospects, India is increasingly viewed as a key strategic
partner for future growth and investment.