As companies diversify away from China, India is emerging as a key partner in the new global supply chain, Mahindra said.
30 Jun 2025 | 616 Views | By Darshan Nakhwa and Ketan Thakkar
As shifting geopolitical alliances, rising economic nationalism, and supply chain reconfiguration redefine the global economic landscape, “India is well positioned to emerge as the new centre of gravity”, according to Anand Mahindra, Chairman of Mahindra Group.
India democratic stability, market scale, and improving manufacturing ecosystem position it as a ...
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As shifting geopolitical alliances, rising economic nationalism, and supply chain reconfiguration redefine the global economic landscape, “India is well positioned to emerge as the new centre of gravity”, according to Anand Mahindra, Chairman of Mahindra Group.
India democratic stability, market scale, and improving manufacturing ecosystem position it as a compelling alternative to China and few Indian companies are as prepared for this moment as the Mahindra Group.
This “state of flux,” as Mahindra described it, reflects global uncertainties: protectionism is reshaping trade, supply chains are diversifying away from China, and economic blocs are reconfiguring. But amid the churn, Mahindra sees opportunity–invoking the ancient Indian legend of Samudra Manthan, a cosmic churning that initially produced poison but eventually yielded Amrit, the nectar of life.
According to Mahindra, today’s turmoil is another such churning. But countries will need to swallow some poison: slower trade, higher costs, and volatility, but it also creates an opportunity for new prosperity to emerge.
"If I were to look for a single sentence that describes the world today, I would quote the American folk singer Bob Dylan and say, ‘The times, they are a-changing,’” Mahindra was quoted in the company’s FY25 Integrated Annual Report. "The old order–social, political, and economic–has been rudely shaken, and a new one has not quite emerged."
“India, too, will face challenges. Our large trade deficit, vulnerabilities in certain sectors, increased competition among nations, and uncertainties affecting GDP aspirations are all challenges that must be met,” he said. “Key industries, such as steel and aluminium, could face headwinds, and export volumes may be impacted. The challenge will be to minimise the adverse effects.”
For India, that prosperity may come from becoming a key node in what Mahindra called Globalisation 2.0–a more regional, multipolar form of global trade. With U.S.-China tensions driving companies to reduce dependency on Chinese manufacturing, India is being viewed as a natural partner in a rebalanced global order.
"China’s adversarial stance may create opportunities for India to position itself as a supply chain alternative–a long-term goal for Indian business," Mahindra said. “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…We must act swiftly and strategically to secure our share of the Amrit.”
The Mahindra Group is aligning its strategy with this new reality. In its automotive division, the company is aggressively pushing into electric vehicles (EVs) with the launch of new models aimed at both domestic and export markets. Meanwhile, Mahindra Defence is scaling up amid India’s growing focus on self-reliance in strategic sectors.
“From producing steel for Indian industries to vehicles for Indian roads, and now electric mobility and defence solutions, we’ve always aligned national interest with business interest,” Mahindra wrote. “Our current thrusts into EVs, renewable energy, defence, and logistics continue that tradition.”
The group’s structure, likened by Mahindra to a resilient banyan tree, is designed to thrive in complex environments. Its federated model gives operating units independence and agility, while sharing core values and synergies. That, he says, is the secret to Mahindra’s adaptability over eight decades of economic change.
“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 said.