India is well-positioned to emerge as one of the new centres of gravity, says Anand Mahindra; calls for speed & private investment amid ‘Globalisation 2.0’

A rising tide of protectionism is reshaping international commerce, however it is not the finish of globalisation—somewhat its rebirth, stated Mahindra Group Chairman Anand Mahindra in his tackle to shareholders in the firm’s 2024–25 annual report. Mahindra believes this transition provides India a novel alternative to emerge as a new centre of gravity in what he known as “Globalisation 2.0”.“India, too, will face challenges,” Mahindra stated, noting the evolving nature of international commerce marked by shifting alliances, diminished dependence on China-centric provide chains, and diminishing dominance of the US market. He stated the world is transferring towards a “multi-polar, regional, and domestically driven” mannequin of globalisation, during which India is well-positioned to thrive.“Ironically, the US shift toward de-globalisation may lead to a new avatar of globalisation… I believe India is well-positioned to emerge as one of the new centres of gravity,” Mahindra asserted.He underscored India’s benefits, together with its secure democracy, popularity as a dependable associate, and a powerful, apolitical navy. However, Mahindra cautioned that the future stays unsure. “Whether it be a country or a business, the winners will be the ones who can successfully navigate uncertainty and ambiguity—the ones who are resilient.”Referring to geopolitical volatility, Mahindra acknowledged that India faces dangers, particularly with “our provocative neighbour”, Pakistan. “I am optimistic that we can demonstrate the limits to our tolerance without impeding our path to economic ascendance,” he added.He identified that US-China decoupling, whereas unsure, is seemingly to proceed, impacting commerce flows. “International trade has already slowed amidst heightened uncertainty and dampened investor confidence,” he stated. Industries counting on international provide chains—such as electronics and client items—are significantly susceptible due to rising enter prices, he warned.Mahindra burdened that India should rethink its commerce dependencies and diversify sourcing. He predicted elevated localisation, re-engineered provide chains, and the formation of new commerce networks globally. India’s commerce deficit, sectoral vulnerabilities, and rising competitors should be addressed strategically.“The challenge will be to minimise the adverse effects, akin to how Lord Shiva confined the poison to his throat without letting it spread,” Mahindra stated, invoking the mythological reference of Samudra Manthan. But he urged India not to merely mitigate dangers however seize this shift as a progress alternative.“Instead, we can proactively view this as an opportunity to enable some ‘Amrit’ to emerge,” he stated. Mahindra emphasised that private enterprise should lead this financial transformation with speed and agility.India may benefit from China’s adversarial stance, which can open up new alternatives in provide chains. Mahindra stated India should deal with innovation, R&D, and manufacturing to seize market share from international rivals. “Restrictions on China and high tariffs for other competing countries could open new markets for Indian goods,” he stated.To make the most of the second, Mahindra warned, India should act swiftly. “Speed and agility are essential, as countries like the Philippines and Vietnam are already touting themselves as future manufacturing hubs. We must act swiftly and strategically to secure our share of the Amrit.”