Davos 2026: India can weather trade disruptions with reforms and resilience, says Mahindra CEO

Anish Shah, Group CEO and Managing Director of the Mahindra Group, struck an optimistic yet pragmatic tone on the global business landscape, trade disruptions and India’s role in the new world order during an exclusive session with the Business Today TV at Davos. 

Addressing the mood among Indian and global CEOs, Shah said the current sentiment is “better than what I expected” despite ongoing geopolitical tensions and supply‑chain challenges. He attributed this to business leaders adapting to volatility and focusing on areas within their control. 

“For us, there was a silver lining from COVID‑19: the semiconductor crisis forced more resilient supply chains and leadership,” Shah said, adding that while surprises remain frequent, India’s strong economic fundamentals are driving confidence among companies. 

On the US economy, Shah expressed confidence in its resilience, noting that even with tariff‑induced disruptions, the economy continues to hold up. While artificial intelligence (AI) has boosted market dynamics, he emphasised that America’s economic strength extends beyond the AI boom. 

Shah underscored AI’s transformative potential, particularly within Mahindra, where the company has seen productivity gains and significant improvements in quality and plant uptime. He detailed how AI‑enabled processes — such as non‑destructive weld testing — are leading to better product outcomes and operational efficiency. 

“AI creates a better consumer experience,” he said, highlighting that the biggest benefits seen go beyond productivity gains to improvements in quality, uptime and customer satisfaction—factors that help with lead generation and conversion. 

Addressing concerns that AI may displace jobs, Shah rejected the notion that technologies inherently destroy employment. He noted historical trends where job displacement in one area led to creation in others, and stressed the importance of reskilling workers in tandem with technological adoption. 

Turning to India’s export landscape, Shah acknowledged that US tariffs have created “a level of uncertainty” and impacted some sectors. He confirmed that Mahindra’s attractive business in the US has felt the effects, even as the company explores mitigation measures including local assembly. Still, he expressed optimism about a mutually beneficial resolution, strengthened by closer ties between India and the US, and potential agreements like the India‑EU Free Trade Agreement. 

Looking ahead to the Indian Union Budget, Shah called for continuity in infrastructure investment, fiscal discipline and government capex—elements he believes will further bolster India’s competitiveness. While noting that private capital expenditure has lagged public investment, he said industry is beginning to ramp up capacity utilization, which should drive future investment. 

On the electric vehicle (EV) front, Shah said India is in a “very good place,” pointing to strong consumer interest and product competitiveness. He credited government incentives for making EV pricing more accessible and highlighted technological progress such as real‑world ranges of 500 km and improved battery durability, backed by rigorous safety testing. 

However, Shah cautioned that charging infrastructure, particularly for highways, remains a key challenge. He projected that a robust charging network should be in place within the next two to three years, after which EV adoption is likely to accelerate rapidly. He expects EVs to represent about 30% of total vehicles in the next 3-4 years and 50% thereafter, a trajectory he described as encouraging for both environmental goals and industry growth. 

“We feel very good about where EV is headed,” Shah said, emphasizing that India’s focus on pure EVs rather than hybrids aligns with policy imperatives including energy security and cleaner air. 

Watch the full interview here