Tata Group Chairman N Chandrasekaran expressed confidence that despite a moderation in India’s growth this year, the country will remain the world’s fastest-growing economy.
Speaking at the global alumni meet of NIT Trichy in Chennai on Saturday, Chandrasekaran highlighted that India’s economic trajectory will continue to outpace others, driven by the country’s alignment with global transitions such as renewable energy, changing supply chain dynamics, and advancements in artificial intelligence (AI).
While acknowledging a temporary slowdown, the Tata Sons chairman reassured that India’s economic fundamentals remain robust, positioning it to maintain its growth lead. “Even with a moderation in growth this year, we will still continue to be growing better than any other country. We will be the fastest growing,” he said, emphasizing that the slowdown is only short-term and growth will soon pick up again.
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Chandrasekaran also pointed out that 2025 will be a pivotal year for AI, with significant investments expected in small language models (SLMs), which are predicted to outperform large language models (LLMs) due to their lower energy consumption, faster results, and cost-efficiency.
“Small language models will have a deeper role to play because they will consume less energy, lower cost, and give faster results. I feel this is going to be a phenomenal year for AI,” he added.
Turning his attention to global dynamics, the Tata Group chief noted that China’s declining economic growth will open up greater opportunities for India on the world stage.
While China once contributed nearly 30% to global growth, this figure has now dropped below 25%, with projections suggesting it could fall further in the next few years.
“In the next three to four years, it will fall below 20 per cent or less,” Chandrasekaran said, explaining that China’s heavy reliance on the real estate sector is undermining its economic stability. He emphasized that India, with its growing business opportunities, is well-positioned to fill this gap.
Chandrasekaran also touched upon the challenges India faces, including inequality, access to education and healthcare, elderly care, and labor productivity.
However, he commended the country’s advancements in digital infrastructure, which he described as ahead of global standards. He cited India’s payment systems, Aadhar, healthcare, and retail banking as examples of some of the finest digital systems globally. “We have the talent and digital systems to support the world’s major transitions, and they all play to India’s strengths,” he said.
The chairman also addressed India’s growing role in renewable energy, noting that the country’s renewable-based electricity has reached 45%, up from 30% a decade ago. However, he cautioned that more needs to be done to meet global carbon emission reduction targets. “To achieve the 1.5-degree target set in Paris, global carbon emissions must be reduced by 43% this decade. However, emissions have increased by 3.3% between 2019 and 2024,” he said, pointing out the challenges in meeting global sustainability goals.
Chandrasekaran concluded by discussing India’s role in reshaping global supply chains. With the increasing geopolitical instability, there is growing demand for alternative supply chains, and India is well-positioned to lead in this area. “The world is thriving for an alternative supply chain, and with our scale, balance, entrepreneurial spirit, and government support, we have all the ingredients to play a significant role in what I call the ‘India Plus Model’ for the global supply chain,” he stated.
