Tata Group Chairman Sees Supply Chain Shift Amid Global Tariff Moves

Tata Group Chairman N. Chandrasekaran has said that the global supply chain model is undergoing major changes due to shifting trade policies and increasing tariffs. Speaking at the Rakesh Jhunjhunwala Memorial Lecture on Tuesday, he pointed out that it’s not just about tariffs themselves, but the disruption of a decades-old system that allowed global production to thrive based on cost and efficiency.

Chandrasekaran explained that the earlier globalisation model worked because countries could produce goods where it was cheaper or more efficient, and then sell them where there was demand. With rising tariffs and trade restrictions, that model is being challenged. He added that the world cannot shift to a new system overnight due to factors like availability of talent, raw materials, and complex sourcing networks.

He also noted that while tariff levels may be negotiated bilaterally, they won’t go back to zero. “Some level of tariffs will remain, and we’ll have to see how the situation evolves globally,” he said.

Despite these global headwinds, Chandrasekaran said India is in a strong position economically. He expressed confidence in long-term demand across sectors such as healthcare, infrastructure, hospitality, and education.

On the topic of artificial intelligence, he said that while routine jobs will be automated, it doesn’t mean jobs will vanish. Instead, the nature of work will change, and new roles will emerge.

He also spoke about evolving work culture, saying work hours depend on roles and individual work styles. “It’s not always about 40 or 70-hour weeks. Some roles demand constant readiness, but it doesn’t mean stress—it can be a rhythm you enjoy,” he said.

Chandrasekaran ended on an optimistic note, saying that challenges will bring transformation and India is well-placed to benefit from it.

Source: Business Standard