Davos 2026: Nadir Godrej sees AI as growth engine, urges tax cuts and trade clarity

Amid rising global tariff tensions and geopolitical noise, Nadir Godrej, chairperson of Godrej Industries Group, told Business Today TV that while tariffs have affected parts of Indian industry, “the economy as a whole has hardly felt it”, with exports to the US largely offset by increased trade with other countries. Godrej said these shifts have brought markets closer together and expressed confidence that India can overcome such challenges. 

Speaking at the World Economic Forum’s 2026 annual meeting in Davos, he highlighted the disconnect between government‑level tensions and company‑level investment, noting that global firms like Google, Amazon and Microsoft continue committing significant capital to India despite geopolitical headwinds. 

On the evolution of artificial intelligence within the Godrej group, Godrej said AI initiatives are underway across businesses, resulting in early productivity gains. Beyond cost savings, he stressed AI should support growth and safeguard employment — a strategy he contrasted with layoffs seen in other economies. Initiatives now include connecting with smallholder farmers through satellite imaging, soil testing and weather forecasting, which have boosted productivity and encouraged growers to pursue higher‑income crops like oil palm. 

Turning to India’s resilient growth trajectory, he said recent tax cuts, particularly in goods and services tax (GST), are “panning out well” and could further fuel domestic expansion if structured to protect budgetary health. A low inflation environment, he added, could allow for future interest‑rate cuts to support growth, though he cautioned that a weak rupee might elevate import costs for commodities over time. 

Addressing broader policy reforms, Godrej observed that the new labour code might pose initial compliance challenges, especially for small and gig‑economy businesses, but he saw limited risk for larger firms and potential long‑term benefits from greater workforce formalization.

On trade agreements, he called the long‑pending India‑US deal “surprising” in its delay, even as Indian exports have diversified. He said a potential agreement with the European Union could boost two‑way trade and investment, while past deals with smaller economies were less impactful due to the size of those markets. 

Wrapping up, Godrej touched on geopolitical issues shaping the 2026 forum — including the conversation around Greenland and global leadership exchanges — and called for constructive dialogue to ease international tensions.