Trump's return could redefine trade and tech rules, pushing Indian firms to prepare for new geopolitical challenges, says Misiek Piskorski

India is undergoing a digital transformation with initiatives like Digital India and Startup India, alongside advancements in e-commerce, AI, and telemedicine. In an interview with Business Today, Misiek Piskorski, Dean of Executive Education and Professor of Digital Strategy, Analytics, and Innovation at International Institute for Management and Development (IMD), Switzerland, discussed the challenges Indian businesses face in digital adoption, the disparity in digital maturity, and potential policy shifts that could arise from a second Trump presidency. 

He was speaking on the sidelines of the Confederation of Indian Industry (CII) Global Economic Partnership Forum held in New Delhi.

Edited excerpts:
 
BT: What challenges do Indian businesses face in digital adoption, and how are healthcare and manufacturing responding differently?
 
MP: As Indian businesses accelerate their move into the digital age, they grapple with two major challenges: bridging wide internal adoption gaps and preparing for global policy shifts that could redefine their strategies. On one hand, executives must tailor digital efforts to industries with vastly different maturity levels—such as healthcare and manufacturing—and align transformation with sustainability. On the other, they must remain alert to geopolitical changes, especially if Donald Trump returns to the U.S. presidency and reshapes international trade and technology rules.
 
India’s digital adoption is far from uniform. Healthcare offers promising examples. Telemedicine platforms, now common in major hospital chains like Apollo, became widespread as the pandemic pushed patients online. AI-driven diagnostics and electronic health records are gaining ground. Yet in manufacturing, old habits die hard. Auto giants like Mahindra & Mahindra leverage IoT-based systems for predictive maintenance, but many smaller workshops in places like Ludhiana or Tiruppur still rely on manual processes. Cost concerns, workforce skill gaps, and outdated infrastructure slow adoption, leaving a patchwork of capabilities across the country.
 
Small and medium-sized enterprises (SMEs) feel these pressures acutely. Often family-run and cautious about heavy investment, they need tangible benefits before embracing change. Still, success stories are emerging. Tiruppur’s garment exporters, for instance, use cloud-based inventory management and digital payments through India’s thriving fintech ecosystem. Government-backed incubators and affordable digital tools ease the transition, replacing clunky spreadsheets with mobile-first solutions. As more SMEs see how technology can streamline supply chains, improve customer reach, and boost efficiency, they gain the confidence to invest further.
 
BT: How are AI and sustainability driving digital transformation in India, and how are businesses integrating both to future-proof their operations?
 
MP: Of the technologies fueling change, AI stands out. Across sectors, it is no longer a futuristic luxury but a present-day enabler. E-commerce giants like Flipkart deploy AI-driven chatbots for customer service. Agri-tech startups use machine learning to predict crop yields and help farmers plan better. Healthcare providers analyse patient data to anticipate outbreaks, while manufacturers rely on AI to reduce downtime and optimise production. As these tools mature, sectors from finance to logistics could see faster decision-making, reduced waste, and better user experiences.
 
Sustainability is another priority in a resource-sensitive market like India. Digital transformation offers tools to meet environmental goals: AI reduces data center energy use, digital platforms minimise food spoilage by connecting farmers directly to consumers, and analytics help companies like Tata Power fine-tune energy consumption.
 
Increasingly, CEOs recognise that digital transformation isn’t just about new technology—it’s also about long-term environmental stewardship. By positioning sustainability at the heart of their strategies, Indian firms can future-proof their operations and differentiate themselves in a global market that increasingly values responsible growth.
 
BT: What should Indian CEOs focus on as they drive digital change?
 
MP: First, they must view transformation as a people-first endeavor. Technology investments only pay off when employees understand and embrace them. Upskilling workers, nurturing a culture of experimentation, and building cross-functional teams can make the difference between stagnation and successful innovation.
 
Collaboration is equally important. Large manufacturers might partner with nimble fintech startups for payment solutions, while healthcare providers team up with analytics firms for patient data insights. CEOs who foster networks across industries can accelerate their digital agendas. Meanwhile, staying abreast of regulatory changes—from domestic data protection laws to international standards—is crucial. Flexibility and foresight can help firms dodge policy pitfalls and leverage new opportunities.
 
Adaptability is key. The digital landscape moves quickly, and the ability to pivot—to alter product lines, target new customer segments, or forge new partnerships—separates leaders from laggards. Indian CEOs should learn not only from global tech giants but also from each other’s best practices. Sharing experiences can raise the bar for everyone and help build a robust national digital ecosystem.
 
BT: How can Indian businesses prepare for policy shifts with Trump’s return to the U.S. presidency?
 
MP: India’s digital ambitions don’t unfold in isolation. The policies that emerged during Trump’s first administration—tighter trade barriers, stricter visa rules, heightened scrutiny of foreign investments—taught Indian businesses the importance of resilience. IT firms reliant on U.S. clients had to diversify markets, while e-commerce companies grappled with data localisation requirements. These shifts highlighted the need for scenario planning, compliance strategies, and reduced dependency on single markets.
 
In second Trump presidency, Indian companies must again adapt. Exporters of software services may look more aggressively at Europe or Southeast Asia. Data-driven firms must prepare for potential cross-border data flow restrictions. By examining how U.S. businesses adapted previously—focusing on compliance, securing supply chains, and developing proprietary technologies—Indian firms can better brace for fresh regulatory twists.
 
Meanwhile, Indian policymakers and industry associations can bolster local digital ecosystems to cushion against external shocks. Stronger data governance frameworks, robust cybersecurity measures, and balanced trade partnerships will all help ensure Indian firms remain competitive, regardless of geopolitical shifts.