Davos, Switzerland – At the Economic Times (ET) Davos 2026 summit, Rich Lesser, the chairman of Boston Consulting Group (BCG), addressed the critical challenges facing India Inc. in a world increasingly defined by tariffs, sanctions, and economic fragmentation. In an interview with Vinod Mahanta, Lesser, along with BCG India head Rahul Jain, discussed the strategic imperatives for Indian businesses navigating this complex global landscape.

Lesser emphasized that the primary task for business leaders is building the capacity to navigate multiple potential futures. He acknowledged the reorganization of global trade and geopolitical blindspots as key factors shaping the current economic environment. While tariffs pose a challenge, Lesser suggested that the impact of artificial intelligence (AI) could be even more significant in the long run. He noted that the future remains uncertain and unlikely to be stable, stressing the need for businesses to remain agile and adaptive.

The discussion also touched upon the ongoing trade dynamics between India and the United States. Lesser expressed optimism that both nations would eventually establish a mutually beneficial tariff policy. However, he cautioned against overemphasizing near-term political challenges, urging business leaders to focus on fundamental, long-term changes driven by technological revolutions, particularly AI.

Lesser highlighted the importance of strategic foresight and the ability to anticipate and respond to various potential scenarios. In a world where uncertainty is the new normal, Indian companies must develop robust risk management strategies and cultivate resilience. This includes diversifying supply chains, exploring new markets, and investing in innovation to maintain a competitive edge.

Furthermore, the conversation addressed the impact of sanctions on global trade and investment flows. Lesser pointed out that sanctions can create significant disruptions and necessitate careful navigation. Indian businesses need to conduct thorough due diligence to ensure compliance with international regulations and avoid unintended consequences. This requires a deep understanding of the geopolitical landscape and the potential implications of sanctions on their operations.

The rise of economic fragmentation presents another significant challenge. As global trade becomes increasingly regionalized, Indian companies must adapt their strategies to capitalize on emerging opportunities in specific markets. This may involve tailoring products and services to meet local needs, building strong relationships with regional partners, and navigating diverse regulatory environments.

In conclusion, Rich Lesser's insights at the ET Davos 2026 summit provided a valuable roadmap for India Inc. to navigate the complexities of a fragmented global economy. By building resilience, embracing technological innovation, and cultivating strategic foresight, Indian businesses can overcome the challenges posed by tariffs, sanctions, and geopolitical uncertainty and position themselves for long-term success.