India can be a connector economy: Anand Mahindra
The next global order may be built by those who can become ‘connectors’ in a fragmented world, thus creating the opportunity for India to be a ‘connector economy’ that works across divides, according to Mahindra Group Chairman Anand Mahindra.
In his address to shareholders of Mahindra & Mahindra Ltd in the company’s latest annual report, Mahindra said global situations that were previously seen as temporary disruptions are now proving to be a more long-term reset of supply chains, geopolitical alignments, and technologies.
Maihndra, who last year described the then-prevailing global situation “as a ‘Samudra Manthan’, a churning”, said that recent events, particularly in West Asia, are showing the ‘Manthan’ is far from over.
“We have navigated the first churning. We must now brace ourselves for Manthan 2.0. Uncertainty is no longer the exception; it is the rule. Black swan events have become obsolete because the pond is full of black swans,” he noted.
Stating that there is a shift from episodic shocks to continuous earthquakes, Mahindra said, “Anticipating change is increasingly difficult, and the imperative is to build the agility and resilience to navigate a constantly shifting landscape. Manthan 2.0 is, indeed, upon us”.
He, however, expressed confidence that amid the uncertainties, there are opportunities for India to emerge as a significant global player.
“The next global order may well be built by those who can become ‘connectors’ in a fragmented world. This opens up an opportunity for India to be a ‘connector economy’ that works across divides. It is already beginning to establish this reputation with its low-key ‘goodwill towards all’ approach over the past year,” Mahindra noted. “Add to that India’s democracy and political stability, its geographical position as a political and economic buffer against China, its large internal market, and the trust which it generates across ideological blocs, and you have the definition of a perfect connector economy,” he said.
Noting that India was the first to implement the concept of non-alignment, Mahindra said this is the ideal time to move from being ‘non-aligned’ to being a ‘multi-aligned’ force and a trusted partner.
“The question for India is no longer whether it will rise, but how fully it will translate this moment into an enduring advantage,” he added.
Wondering if India can continue to reap the “amrit in this new Manthan”, he said, “For India, the stars are favourable. India’s rise today is being increasingly aligned with the way the world is being reconfigured”.
He pointed out that Mark Carney and many other global leaders have called for the world to move beyond rigid trading blocs towards multiple coalitions, which is happening currently.
As for M&M, he said, “The opportunities are even more significant than the last Manthan. This is not a time to stand still or to rest on our laurels. It is time to move from navigation to acceleration”.
Invoking the term ‘Attack Mode’ -- a strategy adopted in Formula E racing, where a racing driver makes a deliberate choice to accelerate at the right moment, in imperfect conditions, he said, “As the mist of uncertainty billows around us, we will look for enduring advantage by going into Attack Mode”.
In ideal conditions, Mahindra said, “Overtaking is difficult because everyone is at the same speed. It is when conditions are rainy or hazy that calculated acceleration can propel you to victory. This is not reactive speed; it is strategic acceleration, backed by preparation and conviction”.
