Global geo-economic shifts have become more frequent. How should CEOs, whether leading global or local firms, navigate this new landscape?
It’s a significant challenge, especially for CEOs in the West who have spent most of their careers in a world that felt stable and predictable. Suddenly, the terrain has shifted. Leaders now recognize that we’re not returning to the pre-2019 world. That means accepting that politics increasingly precede economics. The first questions are now: Can I operate there? Am I welcome? Who will support me if things go wrong? This shift affects capital allocation, risk management and strategy. It means spreading bets more widely, prioritising reliability over efficiency, and building organisations that can adapt quickly. The winners in this environment will be those who can consistently meet customer needs despite political or economic turbulence, who move from efficiency driven models to agility and resilience driven ones.
Are political risks, protectionism and geo-economic tensions now bigger concerns than economic cycles?
My bigger worry isn’t tariffs or protectionism, though those matter. It’s the erosion of global leadership and governance. Since World War II, the US, working through international institutions, has provided a framework for coordinated responses to global challenges. That system is weakening. Without strong leadership-whether from the US or others-we risk losing the ability to respond to issues like climate change or global crises effectively. China is providing some leadership in clean tech, largely for self-interested reasons, but it has been absent on major geopolitical issues like Gaza or Ukraine. So, the concern is not just the economic cycle; it’s the absence of a coherent global response to global problems.
How are Indian corporate leaders placed to deal with such challenges vis-a-vis their global peers?
Indian leaders have long operated in an environment marked by uncertainty-frequent policy shifts, supply-chain disruptions, regulatory changes and macro volatility. This is less of a shock for them than for leaders in, say, Sweden, Portugal or the US. The new global paradigm feels more familiar to Indian CEOs than for many of their peers in the West. With AI emerging as a major force, how are corporate leaders dealing with the shift?
Every CEO I speak to believes AI is transformative. The debate is not whether it will reshape industries, but how dramatically. Many expect major productivity gains and automation. Companies are investing heavily in upskilling and AI literacy so employees can use these tools effectively. Firms have moved beyond experimentation. They’re applying AI at scale -especially in customer service, content generation and operations. You can see the impact in areas like consulting, where firms have cut back on entry-level hiring because AI is taking over many junior-level tasks.
How are company boards responding to the pressures on CEOs?
Boards need education as much as executive teams do. A CEO cannot move quickly or decisively without a board that understands the environment and supports change. But boards are often the most risk-averse part of the system, which can create friction. In today’s world marked by geopolitical uncertainty, rapid technological change, generational shifts and sustainability pressures, risk-averse boards can make the CEO’s job significantly harder.
How do global CEOs view India today?
There’s a great deal of excitement about India’s prospects. Many CEOs, especially in Europe, see India as offering political stability and long-term economic potential. More importantly, there is no viable way for global companies to reduce their dependence on China without deepening engagement with India, whether as a manufacturing base or a consumer market. In that sense, India is the “big prize.” It is seen as a formidable economic player for the coming decades, and many CEOs are looking for ways to contribute to-and benefit from-India’s rise. The stars, in many ways, are aligning for India.
What advice would you give Indian political leaders navigating this global environment?
First, play the long game. India generally does this well, but the current moment is about laying the foundation for the next several decades of prosperity. Second, focus on policies that promote inclusive prosperity. This has been an important pillar of India’s approach, and it will be essential to sustaining growth and stability in a volatile global environment.