Davos 2025: India In Stronger Geopolitical Spot, McKinsey's Gautam Kumra

Amid rising global trade and geopolitical tensions, India’s positioning is stronger than ever, offering more opportunities for value creation, according to McKinsey's Gautam Kumra.

“India has followed strategic opportunism by not aligning with one side, keeping options open and remaining flexible. If India can sustain this balance, it will serve its interests well,” Kumra, Chairman of McKinsey Asia, said.

Challenges such as immigration, trade tariffs, and supply chain disruptions must be carefully managed, he said. “A net-net summary is that there is more opportunity for value creation,” Kumra told NDTV Profit at Davos.

He pointed to key areas—principles, people, and policies—that will shape global growth trajectory. “We’ve heard about principles like deregulation, energy security, and managing inflation. These are known themes,” Kumra explained. On people's front, "We have heard quite a bit about people and have seen the appointments. It's a combination of known and unknow."

However, policies remain an area of uncertainty. “It’s easy to say there will be tariffs—60% on China and 10-25% on others—but questions remain. What categories of products? What sequence, period, and intensity? None of that is clear,” Kumra said.

He stressed the need to view these developments through a broader lens. “It’s not just about trade and tariffs. Consider local industrial policies, trade agreements, and export sanctions. One has to wait and see how things unfold,” he concluded.

India’s ability to navigate these complexities will determine its long-term value creation and global standing, he said.