India Must Seize Moment to Lead Global Supply Chains: Anand Mahindra
- Global trade disruptions from rising protectionism and US-China tensions are reshaping supply chains and increasing costs in key sectors like electronics and consumer goods.
- Anand Mahindra sees a strategic opportunity for India to emerge as a reliable global supply chain hub, urging focus on innovation, R&D, and manufacturing.
- The window is narrow, with countries like Vietnam and the Philippines competing aggressively; swift action and policy alignment are essential for India to capitalise.
Amid mounting global trade tensions and rising protectionism, Mahindra Group Chairman Anand Mahindra has expressed strong confidence in India’s potential to emerge as a reliable and resilient player in global supply chains. Addressing shareholders through Mahindra & Mahindra’s latest annual report, Mahindra highlighted the challenges posed by a shifting geopolitical landscape and the urgent need for India to act decisively.
Mahindra pointed to the growing wave of protectionism, particularly citing the Trump-era tariffs, as a major disruptor of the liberal trade norms that have defined the global economy for decades. These actions, he said, are prompting retaliatory measures, fracturing supply chains, and reshaping political and economic alliances, thereby dampening investor confidence.
“Decades of liberal trade norms are being challenged”, Mahindra wrote, warning that the situation remains volatile. He also noted that while recent developments including tariff talks between the US and China and trade discussions with the UK hint at pragmatism in US policy, the likelihood of a strategic decoupling between the US and China remains high.
Sectors most dependent on global integration, such as consumer goods and electronics, are expected to face the brunt of these disruptions due to rising input costs and supply chain volatility, Mahindra cautioned.
Against this backdrop, Mahindra sees a critical window of opportunity for India to position itself as a global manufacturing and supply chain hub. “China’s adversarial posture may open doors for India”, he noted, stressing that a renewed focus on innovation, R&D, and manufacturing must be central to this transformation.
However, he warned that the window is narrow, as countries like Vietnam and the Philippines are already competing aggressively to attract manufacturing investments. India must respond swiftly, supported by robust private sector investment and coherent policy measures.
Mahindra also urged Indian industries to align with national priorities, especially in sunrise sectors such as renewable energy, defence, and digital infrastructure.
“India is well-positioned to become one of the new centres of gravity in the evolving global order”, Mahindra concluded, citing the country’s democratic stability, professional military, and global credibility as key assets in an increasingly uncertain world.
