Industrialist Anand Mahindra is of the opinion that the United States' trend in the present moment toward de-globalisation might paradoxically lead to a new type of globalisation—a multi-polar, regionally oriented, and nationally driven globalisation.
In the new world order that is unfolding, Mahindra envisions India poised to become one of the key centers of economic power.
In his shareholder message in the Mahindra & Mahindra (M&M) Annual Report for 2024-25, Mahindra referred to how the world is divorcing from the US-led and Chinese dependency model. He observed that the fabric of global trade is also changing, with regional partnerships and diversified supply chains being the priority.
As structural and political uncertainties reduce US hegemony, other capital destinations are on the horizon," he noted, referencing a reconfiguration of global supply chains away from China and to new trading partners.
Mahindra clarified that these changes could also give rise to regional free trade areas, facilitated by reduced tariff barriers and stronger local alliances. This, he added, could dramatically shift the nature of power in global trade.
He also pointed to evidence of a more pragmatic US trade policy, citing the pairing of protectionism with measured global engagement. "Recent US-China tariff negotiations and enhanced trade relations with the UK indicate a pragmatic dimension to US trade policy, marrying protectionism with smart global engagement," Mahindra said, although he added that a widening chasm between the US and China is still very much on the cards.
Although recognizing the difficulties India is likely to encounter under world uncertainties and increasing protectionism, Mahindra highlighted the value of being adaptable. "India, too, will have challenges," he conceded. "But whether it is a nation or a company, the survivors will be those that can effectively travel through uncertainty and ambiguity — the ones that are resilient.
Mahindra observed that China's increasingly aggressive stance might open up an opportunity window for India to emerge as a sustainable alternative in international supply chains. He urged greater focus on innovation and research, with an impetus to get manufacturing back onto the map.
"China's confrontational approach can provide India with the opportunity to become a supply chain option — Indian business's long-term aspiration. Innovation and R&D might get renewed emphasis, while manufacturing might again be in the limelight," he said.
With China and other competing economies under tariffs and restrictions, Mahindra said that India can capture new markets—if the nation is willing to increase domestic production and promote private sector investment. "The potential is there, but to realize it will take a collective emphasis on manufacturing and a noticeable rise in private investment," he said.
He warned that time is running out. "Speed and agility are needed, because countries like Vietnam and the Philippines are already positioning themselves as manufacturing hubs of the future."
Mahindra also urged businesses to harmonize their strategies with the national agenda of India, highlighting sectors like renewable energy, defence, and digital infrastructure as sectors of huge opportunity.
He also emphasized India's institutional resilience. "India is a stable democracy, widely considered a reliable partner, and strengthened by a robust and unpoliticized military," he added.
In a suggestion of regional friction, but without so naming it, Mahindra said of the nearby country: "The scenario with our provocative neighbour is always precarious, but I am hopeful that we can illustrate the boundaries to our patience without hindering our way to economic supremacy."
Read also| Robust Services Exports Drive India’s $13.5 B Current Account Surplus in Jan–Mar
Read also| India’s Top 100 Brands Reach $236.5 Billion in Value, Reflecting Economic Resilience
