The times, they are a-changing: Anand Mahindra flags geopolitical flux

Business Standard

a day ago

Mahindra group Chairman Anand Mahindra on Sunday warned that the ongoing geopolitical and economic shifts may disrupt global trade and supply chains, urging India Inc to respond with strategic agility and investment in manufacturing.
In a note to shareholders, Mahindra compared the present global turbulence to the mythical 'Samudra Manthan', describing a period where long-standing global structures — social, political, and economic — are being shaken, but a new order is yet to solidify.
'The times, they are a-changing,' he said, pointing to growing global protectionism, supply chain disruptions, and the recalibration of international alliances. Tariffs introduced by the US, tensions with China, and the rise of economic nationalism have created a fluid situation, he noted, where countries and companies alike are being forced to reassess dependencies and adapt to new dynamics.
'Many nations will have to swallow some poison,' Mahindra said, referring to the immediate impact of disrupted trade on sectors such as electronics, steel, aluminium, and consumer goods. Countries deeply embedded in global supply chains will need to diversify sourcing and localise operations, he added.
For India, the fallout includes a rising trade deficit, external vulnerabilities, and growing competition in global markets. Mahindra, however, framed this not just as a challenge, but an opportunity for India to position itself as an alternative manufacturing hub. Countries such as Vietnam and the Philippines are already marketing themselves aggressively, and he stressed that India must act 'swiftly and strategically' to stay competitive.
He called for a sharper focus on innovation, R&D, and private sector investment to strengthen India's manufacturing ecosystem. He also pointed to areas such as defence, digital infrastructure, and renewable energy as sectors aligned with government priorities and national growth.
Mahindra also noted the emergence of what he termed 'Globalisation 2.0' — a more fragmented, regionalised form of global trade. As the US retreats from global trade leadership and China faces pushback, supply chains are being diversified and new trade blocs are forming. 'It's a rebirth, not a retreat,' he said, indicating that India could benefit from this realignment if it positions itself as a reliable partner.