India’s Opening in a Fragmenting Global Economy
Artificial intelligence, geopolitical friction, energy security concerns and shifting capital flows are reshaping the global business landscape—and India could be one of the biggest beneficiaries if it responds with speed and flexibility. That is the central message from Bain & Company chairman Manv S. Maceda, who argues that the country is well placed to gain as companies rethink where to invest, build and grow.
Maceda’s broader point is that the old era of frictionless globalization is fading. For years, multinational companies operated with the assumption that they could manufacture anywhere, sell everywhere and move talent freely across borders. That model is becoming harder to sustain as tariffs rise, regional risks intensify and investment decisions become more politically and strategically sensitive.
The End of the ‘Truly Global’ Corporate Playbook
According to Maceda, there is no longer a “truly global CEO” in the way business once understood the term. Companies now have to make sharper choices about which countries they want to operate in and where they want to place capital, talent and long-term assets. For global firms, strategy is becoming less about maximum geographic spread and more about selective positioning in markets that offer resilience and policy clarity.
That shift could work in India’s favor. As China, parts of Europe and some regions of the Middle East become more complex for investors, India continues to look attractive as a destination for supply chains, infrastructure investment and long-term corporate expansion. Maceda also pointed to rising Japanese investment as a notable trend, with Indian and Japanese companies increasing their participation in businesses and infrastructure projects across the country.
Why Adaptability Matters More Than Prediction
For India, the strategic lesson is not to try to predict every disruption but to build the institutional and industrial capacity to respond quickly. Maceda suggests that in an era of repeated shocks, the ability to “make the right turn fast” may become one of the most important competitive advantages for both countries and companies. That is especially relevant for industries facing pressure from prices, returns and wages even as they pursue growth.
This emphasis on agility reflects a larger reality: disruption is no longer episodic. It is structural. Business leaders must assume that industries will continue to be reshaped by technological change, global political tensions and volatile financing conditions. In that environment, countries that combine market scale with adaptability are likely to stand out.
AI Is Not Just a Tool—It Demands Organizational Change
Maceda’s warning on artificial intelligence is particularly striking. He argues that many companies still treat AI as just another software deployment, rather than as a force that requires organizational change. That mindset, he says, is one reason why so many businesses are investing in AI without seeing meaningful financial returns.
According to Bain, roughly 85% to 90% of organizations adopting AI are not yet realizing major benefits. By contrast, the smaller group that is implementing it effectively is improving both revenue and cost performance. The difference lies not only in the technology itself but in whether companies redesign workflows, reinvent roles and address employee reservations about the new systems. In other words, artificial intelligence creates value only when businesses change how work actually gets done.
What AI Could Mean for Consulting
Consulting is among the sectors likely to feel this transformation directly. Maceda expects AI to have a huge impact on the consulting business, pushing firms away from some traditional structures and toward a broader range of commercial models. That could include outcome-based pricing, where consulting firms tie part of their compensation to the results they deliver for clients rather than charging only through conventional fee arrangements.
Even so, he does not believe consulting will disappear. Instead, the industry is likely to evolve. As clients demand measurable impact, faster delivery and more technology-enabled solutions, consulting firms may need to blend strategic advice with implementation support, analytics and AI-driven productivity tools. The firms that adapt early could gain an edge in a market that is becoming more performance-focused.
India’s Opportunity Is Also a Test
For India, the opportunity extends beyond participating in the global AI technology stack. Maceda’s argument is that the country should also lead in using AI to boost productivity across the economy. If India can pair scale with rapid execution—while helping companies and workers adjust to disruption—it may turn a turbulent global moment into a durable economic advantage.
The larger conclusion is clear: artificial intelligence is not acting alone. It is arriving at a time when geopolitics, energy priorities and capital allocation are already forcing a rewrite of corporate strategy. For India and for consulting alike, success will depend less on defending old models and more on adapting quickly to a world that no longer behaves as one seamless market.
Key Terms
- Artificial intelligence (AI): Computer systems that perform tasks such as analysis, prediction or content generation that usually require human intelligence.
- Geopolitical tensions: Political or economic rivalry between countries that can affect trade, investment and business strategy.
- Capital flows: The movement of money for investment between countries, regions or financial markets.
- Supply chains: The network involved in producing and delivering goods, from raw materials to the final customer.
- Organizational change: Changes in how a company is structured, managed or operated in order to achieve better results.
- Productivity: A measure of how efficiently people or businesses produce goods or services.
- Revenue: The income a company earns from its business activities before expenses are deducted.
- Consulting: A professional service in which experts advise companies on strategy, operations, technology or management issues.
- Commercial models: The different ways a business structures its services and generates income.
- Outcome-based pricing: A payment model in which fees are linked partly or fully to the results achieved for the client.
