India Positioned To Become Key Economic Power In Emerging Global Order: Anand Mahindra

Anand Mahindra, Chairman of Mahindra & Mahindra, believes that India is well-positioned to become a central force in the evolving world economic order.

Addressing shareholders in the company’s Annual Report for 2024-25, Mahindra said the United States’ move towards de-globalisation is unexpectedly paving the way for a new form of globalisation—one that is multi-polar, regionally driven, and guided by domestic priorities.

India gains ground as the US and China Drift Apart

Anand Mahindra highlighted that globalisation is undergoing a fundamental transformation.

The dominance of US markets and China-centric supply chains is giving way to a model built on regional collaboration.

As political and structural uncertainties reduce America’s influence, new capital destinations are emerging, he said.

With global supply chains gradually shifting away from China, Mahindra pointed to new trade partnerships and the possibility of lower tariff barriers among regional allies.

This, he noted, could reshape global trade dynamics and shift the centres of economic gravity.

Commenting on recent US-China trade negotiations and strengthening ties with countries like the UK, Anand Mahindra suggested that the US is adopting a more pragmatic trade policy.

“There is a strong likelihood of significant decoupling between the US and China,” he added.

India faces challenges but has unique opportunities

While Anand Mahindra acknowledged that India will face its own set of challenges amid global volatility and rising protectionism, he emphasised the importance of resilience.

“The winners, whether nations or companies, will be those that can navigate uncertainty and ambiguity with agility,” he said.

He suggested that China’s increasingly adversarial position could present India with a valuable opportunity to become a supply chain alternative.

For this vision to materialise, Anand Mahindra stressed the need for a sharper focus on innovation, R&D, and a renewed push for manufacturing.

Mahindra warned that while the global environment may open new markets for Indian goods, particularly as restrictions on China tighten, India must act swiftly.

He emphasized the need for speed and agility, pointing out that countries like the Philippines and Vietnam are already positioning themselves as future manufacturing hubs.

Anand Mahindra urged Indian businesses to align with national development objectives.

He pointed out that sectors like renewable energy, defence, and digital infrastructure are emerging as ‘sunrise industries’ with strong growth potential.

India’s strengths: Democracy, stability, and trust

Highlighting India’s broader geopolitical advantages, Anand Mahindra noted that the country’s status as a stable democracy with a professional, apolitical military enhances its global credibility.

“India is generally regarded as a trustworthy partner,” he said.

In a veiled reference to Pakistan, Anand Mahindra acknowledged ongoing tensions with India’s ‘provocative neighbour’.

However, he expressed optimism about India’s ability to manage regional volatility without derailing its economic ambitions.

“We can demonstrate the limits to our tolerance without impeding our path to economic ascendance,” he concluded.

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