In a shifting world, this is India’s leadership moment, says McKinsey global chief

Mint.A multipolar world could open up new leadership pathways that may not align perfectly with the largest economies, said Sternfels, pointing to emerging growth areas such as artificial intelligence (AI) and data centres.India’s talent, combined with grit and entrepreneurship, gives it a winning edge, said Sternfels, who is serving his second three-year term as head of the consulting firm that has a significant influence across boardrooms and national leaderships.“In a shifting world order, this is India’s leadership moment on multiple dimensions, as it becomes a strategic imperative for organizations globally to re-orient towards India,” he said.Sternfels rejected the idea that global trade is diminishing. Instead, it is growing in different ways, he said.Global trade flow moves like water; if it is blocked somewhere, it finds a different way, said Sternfels, adding that a few free trade agreements were negotiated among countries in the last 12 months, but they do not involve the US.

“Other parts of the world are connecting with each other in different ways.”Sternfels said that since covid, the different exogenous shocks confronting the world have added to the volatility. It has shown that systems for flow of goods, services, capital and labour, were optimized for efficiency, rather than resilience.Rajat Dhawan, the India managing partner of McKinsey & Co., who was also in the interview, said India has shown resilience against covid and the war-triggered price surges.McKinsey’s research has identified '18 arenas of growth' for India, with a potential to add $7 trillion to economic output by 2040, Dhawansaid, citing intersections of sectors including electric mobility.In response to queries emailed later on the