WEF 2026: Navigating Global Tech and Trade Disruptions While India Stands Strong
As the world grapples with tariff wars, trade agreements, and technological upheavals, India emerges as a beacon of resilience and opportunity. CEOs participating in a panel discussion at the ET House in Davos emphasized the need for accelerated reforms, enhanced manufacturing capabilities, and significant investments in innovation to maintain this momentum.
The India Growth Narrative
– Rajiv Memani, Chairman and CEO of EY India, and President of the Confederation of Indian Industry (CII), articulated that the India story is becoming increasingly resounding in light of robust macroeconomic indicators, expanding trade agreements, and strategic geopolitical positioning. He noted that India’s growing relationships with Europe, Asia, and West Asia are fostering confidence beyond mere tariff-driven interactions.
Strengthening Manufacturing Capabilities
– The panel, featuring leaders like Nadir Godrej of Godrej Industries, Rajan Mittal of Bharti Enterprises, and TV Narendran from Tata Steel, unanimously stressed the potential for building world-class manufacturing facilities in India.
– Mittal highlighted the necessity to increase manufacturing’s contribution to GDP from the current 16-17% to 25%. This growth requires fixing capital inflow issues, enhancing logistics, safeguarding priority sectors, and developing comprehensive component ecosystems to enable value-added manufacturing, rather than solely simple assembly processes.
Leveraging Global Supply Chains
– Amid global political turbulence, Indian firms recognized their ability to scale domestically. Narendran stated, A large domestic market serves as the best insurance in a geopolitical context.
– Godrej pointed out that trade disruptions often create opportunities, asserting that every threat leads someone in India to identify new possibilities, ensuring no harm done to the economy.
Adapting to a Shifting Geopolitical Landscape
– Mittal noted the growing trust deficit among allied nations and its implications. Yet, he praised Prime Minister Narendra Modi’s efforts in enhancing India’s credibility globally, which provides an advantage in navigating changing alliances.
Transitioning from Ease to Speed of Doing Business
– Godrej advocated for a governmental focus on speed of doing business rather than just ease of doing business. Memani highlighted that the gap between state and central governments hinders this speed. He suggested establishing collaborative councils akin to the GST Council to facilitate smoother reforms.
Fostering World-Class MSMEs
– Addressing the gap between large conglomerates and micro, small, and medium enterprises (MSMEs), Narendran stressed the importance of inclusive growth for a resilient economy. He stated that no major economy thrives without a robust MSME sector, especially in manufacturing.
– The panel acknowledged the existing regulations and subsidies but identified bureaucracy and financing as critical challenges. Memani called for a shift in mindset among bureaucratic layers and an increase in risk appetite to promote MSME growth.
Closing the Gap in AI and Capital Flows
– Memani remarked that India historically lagged in attracting foreign direct investment (FDI) in artificial intelligence (AI), but now aims to bridge this gap. Initiatives include building AI infrastructure such as data centers and a sovereign AI cloud, along with expanding vernacular support to enhance usage.
As India continues to navigate global tech and trade disruptions, the consensus among industry leaders at Davos is clear: while challenges persist, the commitment to innovation and strategic reforms will be pivotal in securing India’s place as a future economic powerhouse.