Just about 20 years ago, Thomas Friedman published his much-celebrated book, 'The World Is Flat'. That book made the world sit up and take notice of outsourcing, offshoring, supply chains and common business partners.

The United States was the only superpower and the driving force of the world economy. It was said that when America sneezes, the world catches a cold. Fast-forward to today, and we live in a multipolar world where anyone sneezes and the world catches a viral fever. Your friend's friend is your enemy, and your enemy's friend is your friend. Or is he? We do not know.

In such a multipolar world, it is difficult to say where geopolitics ends and geoeconomics begins, or vice versa. But it is this very multipolar world that is opening up many opportunities for India.

Two major characteristics of this changing world are:

1. Trade Fragmentation:

As you know, trade fragmentation is rewinding our world, shifting the guiding logic from lower costs to the 'China Plus One' strategy. Earlier, it was always about cost. For decades, supply chains were built around cost optimisation through economies of scale and manufacturing in China. The principle of 'just in time' is now giving way to 'just in case'. Companies around the world are building resilience through strategic inventory and diversified supply chains. Trade and capital flows are increasingly being redirected by geopolitical considerations rather than purely economic interests. And that is India's greatest opportunity.

Corporate India must capture the wave of fragmentation. We must seize this opportunity to establish a dominant position in global markets. We will succeed if and only if we demonstrate sufficient ambition, capability and resilience.

If it were only about scale, we would never have been able to compete with China. But the changing nature of global trade presents a new opportunity. This will be the biggest structural change for Indian companies in the coming decades.

For that, we have to build companies that are more resilient, with strategies that can withstand volatility in currencies, commodities and capital flows. These decisions are no longer taken by companies in isolation. They have to consider the wider geopolitical environment.

Since geopolitics is no longer just background noise, it directly affects the way businesses operate. Yet most boards may not have a formal framework for geopolitical risk. They have risk management systems, but geopolitical risk requires a different approach, involving diplomats, policy experts and an understanding of the changing world order.

We also have to redesign our entire approach to management around strategic options. What options are available? In this new world order, it is not simply about which supplies are available, but which strategic options are available to us. We must build different options for strategic inputs, people and commodities sourced from across the world. As the world redefines strategy, having options becomes increasingly important. The third consideration is Governance. Earlier, we focused on individual assets and specific measures of performance. Now, the emphasis must be on resilience. We must ask whether what we are doing today can continue in the future under adverse conditions. Management incentives should not be about cost savings alone; they must also reflect the resilience of the systems being built.

2. A Multipolar Currency System

We all know that the dominance of the US dollar has been declining, although it continues to account for a substantial share of global financial transactions. The coexistence of gold and different currencies sends an important message. The world is moving towards a more multipolar currency system, and we must understand what that means for the future.

The world we are entering may remain in this state for decades. The global order might remain a state of disorder for a very long time. We may not see much order until a new balance of power emerges. Our government, our immigrants, our banking system and Corporate India have to work together for many years. They cannot work in isolation.

The government should engage in better trade diplomacy, leveraging our neutrality, our friendliness and our soft power. Land, labour and capital market reforms are urgently needed. If we are to establish a strong foundation for growth, these reforms will be very important. On the regulatory side, the banking system must provide an enabling environment for companies to capitalise on these emerging opportunities by providing growth capital with greater risk tolerance. In a volatile world, risk will increase. Regulators have to understand that there will be greater risks, while ensuring that the financial system remains resilient.

Most importantly, returning to trade fragmentation, the world is being reshaped. In fact, if anyone has read Thomas Friedman's book, they may recall that he visited Bangalore and described how Corporate India rose to the occasion and captured the opportunity presented by IT services outsourcing. This time, Corporate India must capture the wave of fragmentation. We must seize this opportunity to establish a dominant position in global markets. We will succeed if and only if we demonstrate sufficient ambition, capability and resilience.

Friends, we will not get a better opportunity than this to become a developed nation by 2047. Let us make the most of it.

Thank you very much.