Tata has survived two world wars and high borrowing, but today’s challenges are different: N Chandrasekaran
Tata Sons Chairman N Chandrasekaran said the group has weathered wars and economic upheavals over its 160-year history, but faces an unusually complex mix of geopolitical tensions, AI disruption and supply-chain crises today.
- Oct 13, 2026,
- Updated Oct 13, 2026 12:47 PM IST
Tata Sons Chairman N Chandrasekaran said the simultaneous pressures of geopolitical tensions, artificial intelligence disruptions and commodity and supply crises have made the current business environment particularly challenging, even as he stressed that the 160-year-old Tata Group has weathered major economic and global upheavals in the past.
“We had it very good in the last five decades. That's what the first realisation is. But if you look at a group like ours, which is about 160 years old, we have seen two world wars... we have seen high borrowing levels and many things... and we have survived. So, it is not the first time that something like this is happening. But the primary difference many things are happening at the same time. Geopolitical tensions, AI disruptions and commodity and supply crisis,” Chandrasekaran said at the Bloomberg New Economy Forum 2026 in New Delhi.
Against this backdrop of overlapping risks, Chandrasekaran defended Tata Group's long-term investment strategy, including its semiconductor manufacturing ambitions, while emphasising the need for financial discipline.
“We can’t be reckless,” he said, highlighting the importance of balancing strategic investments with financial prudence.
Balancing investments with financial discipline
Tata Group, which reported $185 billion in revenue last fiscal year, has committed to a $120 billion growth wager aimed at building future capabilities. However, the scale and long gestation periods of some investments have brought capital allocation into focus.
Tata Trusts, which owns about 66% of Tata Sons, has raised concerns over investment decisions and projects that could take longer to deliver returns.
Chandrasekaran acknowledged that businesses must evaluate financial viability even when operating in uncertain markets. He cautioned against relying entirely on conventional financial projections to assess investments in emerging industries.
“You need to feel the stones and cross the river. It is not that you are going to have a very clean spreadsheet in this uncertain world,” he said.
Semiconductor manufacturing
Tata's semiconductor programme illustrates the long-term nature of these investments. Tata Electronics is building a semiconductor fabrication facility in Dholera, Gujarat, while a separate assembly and testing facility is being developed in Jagiroad, Assam.
Chandrasekaran argued that the semiconductor push should not be judged solely on whether it meets financial targets within two to three years, given the strategic importance of chips to India's industrial and technological development.
MUST WATCH: N Chandrasekaran: Tata Has Survived All Crises, But Current Challenges Are Very Different
“Direction is certain, need is certain, ability to execute is certain,” he said, expressing confidence in India's talent pool, domestic market and ability to expand its role in the global semiconductor industry.
Supply chain resilience and technology risks
Chandrasekaran's comments also highlight the challenges businesses face from supply-chain disruptions, cyberattacks and geopolitical conflicts. He discussed the impact of technological change on employment, including the need to restructure labour markets in the near term, while noting that technology could deliver significant benefits over the medium to long term.
ALSO READ: 'We grow with the world, not at anyone's cost': PM Modi on India's economic growth
Tata Sons Chairman N Chandrasekaran said the simultaneous pressures of geopolitical tensions, artificial intelligence disruptions and commodity and supply crises have made the current business environment particularly challenging, even as he stressed that the 160-year-old Tata Group has weathered major economic and global upheavals in the past.
“We had it very good in the last five decades. That's what the first realisation is. But if you look at a group like ours, which is about 160 years old, we have seen two world wars... we have seen high borrowing levels and many things... and we have survived. So, it is not the first time that something like this is happening. But the primary difference many things are happening at the same time. Geopolitical tensions, AI disruptions and commodity and supply crisis,” Chandrasekaran said at the Bloomberg New Economy Forum 2026 in New Delhi.
Against this backdrop of overlapping risks, Chandrasekaran defended Tata Group's long-term investment strategy, including its semiconductor manufacturing ambitions, while emphasising the need for financial discipline.
“We can’t be reckless,” he said, highlighting the importance of balancing strategic investments with financial prudence.
Balancing investments with financial discipline
Tata Group, which reported $185 billion in revenue last fiscal year, has committed to a $120 billion growth wager aimed at building future capabilities. However, the scale and long gestation periods of some investments have brought capital allocation into focus.
Tata Trusts, which owns about 66% of Tata Sons, has raised concerns over investment decisions and projects that could take longer to deliver returns.
Chandrasekaran acknowledged that businesses must evaluate financial viability even when operating in uncertain markets. He cautioned against relying entirely on conventional financial projections to assess investments in emerging industries.
“You need to feel the stones and cross the river. It is not that you are going to have a very clean spreadsheet in this uncertain world,” he said.
Semiconductor manufacturing
Tata's semiconductor programme illustrates the long-term nature of these investments. Tata Electronics is building a semiconductor fabrication facility in Dholera, Gujarat, while a separate assembly and testing facility is being developed in Jagiroad, Assam.
Chandrasekaran argued that the semiconductor push should not be judged solely on whether it meets financial targets within two to three years, given the strategic importance of chips to India's industrial and technological development.
MUST WATCH: N Chandrasekaran: Tata Has Survived All Crises, But Current Challenges Are Very Different
“Direction is certain, need is certain, ability to execute is certain,” he said, expressing confidence in India's talent pool, domestic market and ability to expand its role in the global semiconductor industry.
Supply chain resilience and technology risks
Chandrasekaran's comments also highlight the challenges businesses face from supply-chain disruptions, cyberattacks and geopolitical conflicts. He discussed the impact of technological change on employment, including the need to restructure labour markets in the near term, while noting that technology could deliver significant benefits over the medium to long term.
ALSO READ: 'We grow with the world, not at anyone's cost': PM Modi on India's economic growth