Here are the biggest top 10 challenges Indian CXOs face today and what to do about them, with practical, India-specific plays to improve outcomes. The aim is to help leaders move from awareness to execution with clear, measurable actions that build resilience and sustainable growth in 2025 and beyond [1][2].

Executive summary

Indian CXOs are squeezed by a paradox: deliver near‑term performance while funding future bets amid compliance shockwaves, AI disruption, cyber risk, talent gaps, margin pressure, and volatile demand; winning leaders institutionalise dual-speed execution, mature governance, and data-driven operating systems to turn risk into advantage [1][3].

1) Strategy vs. quarter

Challenge: Balancing multi‑year transformation (AI, cloud, supply chain, decarbonisation) with quarterly pressures erodes either growth engines or cash flows if handled as an either‑or choice [4].

What to do: Ring‑fence 10–15% OpEx for future bets, track leading indicators in a balanced scorecard, and hardwire them into CXO incentives; run quarterly portfolio reviews to reallocate from stalled trials to scaling wins with a consistent investor narrative [4].

2) Revenue growth under headwinds

Challenge: APAC CFOs rank revenue growth as the top priority while juggling cost control, productivity, and strategy execution in a choppy macro and funding environment [1].

What to do: Build a barbell growth plan—expand core with pricing and productivity while incubating adjacencies and M&A options; set hurdle rates and milestone gates, and use scenario planning to rebalance mix quarterly [1].

3) Compliance shock and regulation

Challenge: India’s compliance load is intensifying (DPDPA, sectoral mandates), with skills shortages, manual processes, fragmented accountability, and audit readiness gaps pushing risk exposure higher [3].

What to do: Stand up a cross‑functional compliance office with a unified control framework, automate evidence collection, map sensitive data across hybrid/cloud estates, and conduct DPDPA readiness sprints with external assurance partners [3].

4) Cybersecurity and data breaches

Challenge: Breach volumes and costs remain elevated in India; hybrid sprawl, insider threats, and supply chain attacks expand the attack surface as audit and logging gaps persist [3][5].

What to do: Adopt zero‑trust by design, continuous control monitoring, and tabletop exercises; prioritize identity, segmentation, data discovery, and immutable backups; tie CISO scorecards to dwell time, control coverage, and recovery SLAs [5][3].

5) Responsible AI at scale

Challenge: Organizations are embedding AI widely, but governance, risk, and trust lag—CXOs under‑estimate consumer concerns on misinformation, jobs, and control, creating reputational and regulatory risk [6][7].

What to do: Establish an AI governance board, model registries, human‑in‑the‑loop checkpoints, red‑teaming, and clear disclosure; appoint or empower the Chief AI Officer to own guardrails, performance, and ethics metrics end‑to‑end [6][7].

6) Talent and leadership economics

Challenge: CXO compensation is rising amid shorter tenures and higher scrutiny, while critical digital and compliance skills remain scarce; incentives skew long‑term toward financials over strategic lead metrics [8][9].

What to do: Calibrate pay mix to strategic lead indicators (customer, digital adoption, resilience) for bonuses; expand build‑buy‑borrow talent models and succession benches; use transparent scorecards to align boards and investors [9][8].

7) Productivity and cost takeout

Challenge: Margin pressure and muted tech spend force leaders to do more with less while funding AI and digital; overreliance on manual processes drags compliance and operations [2][3].

What to do: Launch an “AI-for-ops” program targeting finance, HR, risk, and customer ops with measurable cycle‑time and error‑rate reductions; retire legacy, consolidate vendors, and reinvest released savings into growth platforms [1][3].

8) Tech funding volatility

Challenge: Capital cycles and deal slowdowns require disciplined allocation and resilience in transformation funding across India’s tech landscape and adjacencies [2][10].

What to do: Stage‑gate big bets with option value thinking, diversify funding (alliances, customer co‑builds), and maintain a liquidity runway for priority programs; embed rolling 12‑quarter capital roadmaps [1][2].

9) Sector digitization and financial ecosystems

Challenge: BFSI, embedded finance, and platformization are accelerating with regulatory oversight and customer expectations shifting in real time [11][12].

What to do: Build ecosystem plays with compliant data sharing, consented personalization, and API monetization; stress‑test third‑party risks and shared controls across partners annually [11][12].

10) Industry momentum with uneven outlook

Challenge: India’s tech sector crossed ~US$254B with muted FY24 growth and a cautious funding climate, even as CEOs expect better FY25 on AI moving from PoC to production and GCC expansion [2][13].
What to do: Prioritise AI industrialisation use cases with clear P&L impact, expand GCC capabilities for speed and quality, and reset 2026 targets with realistic ramp profiles and capacity planning [2][13].

What great looks like

• • Operating model: Dual‑speed governance that protects a ring‑fenced innovation budget while delivering quarterly earnings, enforced through a published strategy scorecard and investor narrative [4][1].

• • Risk and trust: Unified risk taxonomy spanning cyber, AI, third‑party, and compliance with automated evidence and continuous controls monitoring; board‑level reporting on time‑to‑detect and AI incidents [3][6].

• • Talent and incentives: Incentives tied to strategic lead metrics, transparent performance scorecards, and an empowered CAIO/CISO triad; succession and external benches for scarce roles [9][7].

A 90‑day playbook

• • Week 0–2: Baseline risk and readiness—DPDPA audit, AI use‑case inventory, control coverage, breach drill, and P&L impact mapping for top 10 processes [3][6].

• • Week 3–6: Approve ring‑fenced growth pool and scorecards; launch three AI‑for‑ops sprints (finance close, customer support, compliance evidence) with target KPIs and savings capture [4][1].

• • Week 7–10: Stand up AI governance board and CAIO mandate; implement model registry, red‑teaming cadence, and human‑in‑the‑loop checkpoints; publish external trust principles [6][7].

• • Week 11–13: Portfolio review to scale winners, exit low‑yield initiatives, and refresh 12‑quarter capital roadmap; brief board and investors on milestones and risk posture improvements [1][2].

Closing thought

The edge for Indian CXOs will come from institutionalizing three habits: allocate to the future with discipline, operationalize trust in cyber/AI/compliance, and tell a consistent value story every quarter; those who master this triad will convert volatility into compounding advantage in 2025–2026 [1][3].

Sources
[1] APAC CFO 2025 survey report 
[2] [PDF] nasscom Strategic Review 2024 
[3] Why Indian CXOs Are Turning to Experts to Handle 2025’s … – IValue 
[4] Biggest Challenges faced by CXOs [How to overcome] [2025] 
[5] CXO Monthly Roundup, June 2025: Zenith Live, Data@Risk Report, 
[6] How CXOs Must Build Customer Trust in AI | EY – India 
[7] The Rise of the Chief AI Officer: A New Mandate for India’s CEOs in … 
[8] With double-digit hikes, CEO pay in India stands at Rs 10 … 
[9] Deloitte India Executive Performance and Rewards Survey … 
[10] Tech Funds Take a Hit: What India’s CXOs Need to Know About the … 
[11] ETBFSI CXO Conclave’ 25: Charting the future of embedded finance … 
[12] CXO Meet 2025: Pioneering the Future of Finance Through … 
[13] IT industry to grow 3.8% in FY24 to cross US$ 250 billion, says … 
[14] The Evolving Role of the CISO in 2025: Strategies, Challenges, and … 
[15] With double-digit hikes, CEO pay in India stands at Rs 10 Cr 
[16] NASSCOM CEO Survey – A Brief 
[17] [PDF] the indian tech start-up landscape report 2023 – iTIC Incubator 
[18] Four priorities to fine-tune the future of CXOs – Insights2Action 
[19] Summary of Economic Survey 2024-25 – NASSCOM Community 
[20] Year of AI 2025: Challenges & Opportunities for Students – CXO Today