India poised to emerge as centre of gravity in new world economic order: Anand Mahindra

Mumbai, June 30 The USA’s shift toward de-globalisation may ironically lead to a new avatar of globalisation that is multi-polar, regional, and driven by domestic imperatives for which India is well-positioned to emerge as one of the new centres of gravity, industrialist Anand Mahindra has said.

In his address to shareholders in the Mahindra & Mahindra (M&M) Annual Report for 2024-25, Anand Mahindra, said globalisation is evolving and the US market centrality and China-centric supply chains are being replaced by multi-polar, regional collaborations.

As structural and political uncertainties diminish US dominance, alternative capital destinations are emerging, he observed.

Global supply chains are diversifying away from China, creating new trade partnerships. Lower tariff barriers among regional partners may emerge, boosting free trade and reshaping international trade centres of gravity, Mahindra pointed out.

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," he observed.

He admitted that "India, too, will face challenges" due to the ongoing global turmoil in the midst of a growing wave of protectionism.

“However, 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," Mahindra remarked.

“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,” Mahindra opined.

Companies could benefit from aligning their strategies with national objectives, as renewable energy, Defence, and digital infrastructure are becoming sunrise industries in India, he pointed out.

He also highlighted that India is a stable democracy, generally regarded as a trustworthy partner, and bolstered by a strong military that is not politicised.

In a reference to Pakistan, Mahindra said, "The situation with our provocative neighbour is always volatile, but I am optimistic that we can demonstrate the limits to our tolerance without impeding our path to economic ascendance."

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