With the changing geopolitical situation, restrictions in the supply chain and tariffs impacting businesses across the world, Mahindra Group Chairman Anand Mahindra believes India offers opportunities that could be leveraged.
Addressing shareholders in Mahindra & Mahindra’s annual report, Mahindra stated that international trade has already slowed amidst heightened uncertainty and dampened investor confidence.
“A growing wave of protectionism is challenging decades of liberal trade order, dramatically highlighted by the Trump administration’s tariffs. These measures are sparking global responses, including retaliatory tariffs, disrupted supply chains, shifting political alliances, and economic groupings. The situation remains fluid. Recent US-China tariff talks and strengthened trade ties with the UK suggest a pragmatic layer to US trade policy, combining protectionism with strategic global engagement.
However, there remains a strong likelihood of significant decoupling between the US and China,” said Anand Mahindra.
Consumer Goods and electronics industry, dependent on the global supply chains, will be the most impacted by rising input costs. Mahindra further pointed out that countries that are deeply integrated into the global trade networks must rethink dependencies and diversify sourcing.
India Growth
With supply chain restrictions coming in from China, India could be an alternative for the world.
“China’s adversarial stance may create opportunities for India to position itself as a supply chain alternative — a long-term goal for Indian business. Innovation and R&D could receive renewed focus, while manufacturing could once again take centre stage. Restrictions on China and high tariffs for other competing countries could open new markets for Indian goods. The potential exists, but achieving it will require a concerted focus on manufacturing and a palpable increase in private investment. Speed and agility are essential, as countries like the Philippines and Vietnam are already touting themselves as future manufacturing hubs,” he said.
Companies could benefit from aligning their strategies with national objectives, as renewable energy, defence, and digital infrastructure are becoming sunrise industries in India.
“I believe India is well-positioned to emerge as one of the new centres of gravity. We are a stable democracy, generally regarded as a trustworthy partner, and are bolstered by a strong military that is not politicised,” added Mahindra.