India has reported the lowest level of AI integration into business functions within APAC region (88% versus 95% average). Less than one-fourth Indian business leaders are confident of addressing the totality of all business challenges ahead, lagging all other countries in the region (30%) as well as the global average (32%), according to the 2025 Global Business Sentiment Survey Report released by Kroll.

India also reported the lowest level of confidence in financial health across the region and nearly half  of the respondents (48%) acknowledged that the situation had either not changed or worsened versus one year ago. 

Among the most significant global business challenges cited by organisations in India are: cybersecurity threats, AI developments and integration, data privacy concerns, economic instability, regulatory changes and geopolitical tensions.

For those who selected geopolitical tensions, tariffs, technology controls and cybercrime, supply chain disruptions, regulatory shifts and workforce migration all factored into their worries, stated the report.

Key India findings:

Overall sentiment and preparedness

•    India shows the lowest preparedness levels in the region across multiple business challenges.
•    More than half (56%) say their level of preparedness for the year ahead is either the same or lower than it was over the previous year.
•    Less than one-quarter of Indian business leaders are very prepared to face the geopolitical challenges that lie ahead, on par with Japanese respondents but lagging the rest of the region.

Artificial Intelligence

•    AI developments and integration tied with cybersecurity threats as the most significant business challenges (44% each) facing organisations over the next year.
•    Nearly one in four Indian respondents feel very prepared to implement AI into an array of business functions, in line with Australia but lower than all other APAC countries and territories besides Hong Kong (18%).
•    Within the region, India reports the lowest level of AI integration into business functions (88% versus 95% average), and indexes particularly low versus other countries with respect to IT application (44% versus 52% average).

Financial Health

•    Only 24% of Indian business leaders feel very prepared to address budget challenges they may face over the coming year. Nearly three in 10 (28%), feel very prepared to face debt service and financial risk, mirroring responses in Australia but lagging the rest of the region.
•    Financial stability is the chief reason that those feeling very prepared to face business challenges feel so secure (47%), with skilled workforce a distant second (26%).
•    Within APAC, India (along with Australia) shows the highest level of restructuring consideration over the next year (24%, versus 18% at the APAC and global levels).

Cybersecurity and Data Privacy

•    Cybersecurity threats have escalated over the past year for more than two-thirds (68%) of the Indian respondents. Website breaches tie with malware (54% each) as top concerns.
•    Just 28% of India respondents feel very prepared to face cybersecurity challenges, second in their lack of confidence to only Hong Kong, and tied with Australia.
•    Cybersecurity threats tied with AI developments and integration as the most significant business challenge (44% each) facing organisations over the next year.

Tarun Bhatia, managing director and co-head APAC, investigations diligence and compliance, Kroll, said, “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.” 

He added, “Additionally, the weaponising 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.”  

In this research, the APAC region includes respondents based in Australia, China, Hong Kong (separate from China), India, Japan and Singapore.