New Delhi
Indian CEOs are excited about the opportunities created by geopolitical churn and they believe that India is set to become a magnate for global capital and sourcing in the years to come.
A CEO panel comprising Mr Harsh Pati Singhania, Chairman & Managing Director, JK Paper Ltd; Mr T V Narendran, CEO & Managing Director, Tata Steel Ltd; Mr Vishal Kampani, Non-executive Vice Chairman JM Financial Ltd; and Mr Yezdi Nagporewalla, Chief Executive Officer, KPMG in India discussed how to navigate geopolitics and manage global risks to growth.
The discussion was moderated by Mr Raj Chengappa, Group Editorial Director (Publishing), India Today Group.
Mr Chengappa pointed to the many open and shadow wars in key parts of the world, 64 countries voting for their next government this year, and the continuous disruptive force of climate change and AI as some of the key issues that require Indian CEOs attention.
Mr Narendran said that Indian companies have great opportunities in the domestic as well as the global markets. He pointed out that a rapid construction of infrastructure, promotion of entrepreneurial culture, global derisking of supply chains, India getting more plugged into global supply chains are among the factors that will create opportunities for Indian companies, provided they build competitiveness.
According to Mr Singhania, India needs to capitalize on the opportunities created by the west raising barriers against the Chinese. He said that India needs to do more on regulation to make doing business easier, faster and cheaper. He emphasized that China’s competitive advantage has been its deep skills in supply components to the world and India needs to be competitive in that area. He also said that India is becoming a huge market and the world is coming to India.
Mr Kampani said that his clients are excited about India like never before. The world is not looking great, with the largest economy in the world having a fiscal deficit of 8%, and if India plays its cards well, India will be the most sought after investment destination in 5-7 years.
Mr Nagporewalla cautioned that India will not get the result overnight despite the favourable geopolitical situation. However, he insisted that India is on the path to displacing China as the manufacturing hub of the world.
Talking about the climate change factor, Mr Narendran said that it would have more impact on business than most CEOs realize. He stressed that the transition to green energy and technologies will require government and customer support. He pointed out that steel transition to gas and hydrogen requires infrastructure to be put in place, especially in eastern India.
Mr Singhania said that India must avoid over-compliance while caring about the planet. He said that Europe is caught in its own climate change regulation and the US can be expected to care far less about it if Mr Donald Trump returns as its president.
Talking about the AI opportunity and threat to Indian companies, Mr Nagporewalla said that AI would be the largest disruptor in the next 2-3 years and the country that regulates it more effectively will have the advantage in the future.
Mr Kampani said that India’s reliance on foreign capital is going down as Indian savings are moving to investments. He pointed out that the top 3-4 mutual funds are managing more than $100 bn of equity and there is enormous room for pension funds to increase their exposure to the equity markets in India. He pointed out that about 40% of the money coming to the mutual funds is from the second and third tier cities of India. He expects private equity and sovereign funds to come to India because of its 7% plus GDP growth and better managed fiscal situation.
During the session, AIMA released its first ‘Women Leadership in Corporate India 2024 Report’, done in partnership with KPMG.
Introducing the report, Mr Nagporewalla, said that the report explores five key elements - current landscape, aspirations of women, analysis of the barriers, importance of cultivating essential skills, and creating supportive work environment.
“The report is not just about what is wrong but it also advices what can be done,” Mr Nagporewalla said.
The session was livestreamed on AIMA’s social media channels.
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