Kamal Bali, President and MD of Volvo Group India, delivered this Inaugural Address at the 69th AGM, urging future-ready leadership in a transforming India.
Let me share with you the key shifts we are witnessing in the world of business and commerce and about what constitutes the “India Advantage,” how we can leverage these opportunities, and how we can navigate the many challenges that lie ahead through entrepreneurial leadership and managerial excellence.
The Four Forces of Transformation
The shifts we are experiencing are significant. The so-called VUCA world—Volatile, Uncertain, Complex, and Ambiguous—is perhaps more intense now than ever before. And it might become even more so. Every industry, across sectors, is undergoing massive transformation. This transformation is being driven primarily by four key factors: Connectivity; Digitalisation; Automation; and Energy Transition. These four forces are not just disrupting individual sectors—they are triggering ecosystem-wideshifts. That makes it even more complex. We are now required to connect the dots across multiple dimensions and disciplines.
Geopolitical uncertainties are also sending tremors across the globe. Then there is social media—giving people borderless platforms for expression. Be it ideas, suggestions, or news—right or wrong—it spreads globally in seconds. That too needs managing. In fact, the kind of shifts we are witnessing today are possibly unprecedented in the past century.
I was listening to a podcast where a speaker observed that despite advances in medicine, we still lack cures for diseases like cancer, type-1 diabetes, and Parkinson’s. He was placing his hopes on biological AI—saying that soon we may have digital twins of our cells, enabling scientists to test potential treatments virtually. That is the reality of where we’re headed.
In my own industry, think about the internal combustion (IC) engine that was perfected over 120 years. Imagine the engineers who spent their careers mastering that engine—how must they feel seeing the shift toward battery electric vehicles? Now, we talk about software-defined vehicles. The entire paradigm is shifting. Entirely new skill sets are being demanded. And this is happening not just in automotive—it’s happening across all sectors: agriculture, art, culture—everywhere. Technology is changing the behaviour of every industry.
The future of globalisation is uncertain.
Four Seismic Shifts
If I were to summarise these into four seismic shifts, here’s how I would put it:
The Return of Big Power Conflicts: For the first time since World War II, we are seeing the re-emergence of major geopolitical tensions. The Russia–Ukraine war, the Middle East crisis involving Israel, Iran, and Hamas, and tensions in Asia, particularly Taiwan and China—these are no longer regional issues; they have global implications. Even in India, we are affected.
The Crisis in Economic Globalisation: Globalisation, which truly gained momentum 30 years ago and greatly benefitted China, is now facing serious challenges. We see a shift toward protectionism, trade barriers, and redefined supply chains. Trump’s tariff regime and the rise of “economic nationalism” are part of this broader trend. The future of globalisation is uncertain.
The Emergence of AI and Exponential Technologies: Artificial Intelligence and allied tech tools are redefining the future of industry. This calls for a sense of urgency. And here, India has the opportunity for a second-mover advantage, provided we act decisively.
The Rise of Holistic Sustainability and Energy Transition: Sustainability is no longer a buzzword. Going forward, every action, policy, and business decision will be judged through a new lens: Is it economically viable? Is it environmentally responsible? Is it socially inclusive? Is it ethically sound? This integrated approach to sustainability will shape future innovation and leadership.
In the face of these four mega-shifts, we are seeing the world through a very different lens—one that requires entirely new skill sets, mindsets, and models of leadership. India is in the right place, at the right time, with the right people. As I travel across the world, I can see the sheer energy and enthusiasm in India today. It’s palpable. It’s real. And we need to leverage it.
On a Positive Trajectory
If we look at the macro indicators, especially over the last six months, we can see that private sector investment is on a positive trajectory. That’s a very encouraging sign. We’re also seeing the net assets of the private sector going up—which is a very good sign. Headline inflation has come down, even falling below the Reserve Bank of India’s 4% benchmark. Rural and urban households are showing optimism in their future consumption patterns, and that is encouraging. Our current account deficit is down. Foreign exchange reserves are strong. And India’s external debt-to-GDP ratio remains low.
But the real story is this: over the next 10 to 15 years,
India is projected to grow at more than twice the rate
of the rest of the world.
India’s services trade has consistently acted as a strong cushion—especially when we face challenges on the manufacturing front or with imports like crude oil. It gives our economy resilience during times of external stress. Now, if we look at India’s overall growth story, we’re on track to soon become the third-largest economy in the world. We talk about it often. Of course, our per capita income remains relatively low—and that’s where we need to move upward.
But the real story is this: over the next 10 to 15 years, India is projected to grow at more than twice the rate of the rest of the world. While global growth is expected to hover around 2.5–3%, India is likely to grow between 6.5–7.5% annually. That means India’s contribution to global growth will be 2.5 times higher than it is today. That’s a major shift.
Don’t Compare with China
However, unlike China, which grew primarily on the back of exports—with only about 30% of its economy driven by domestic consumption—India’s growth story will be different. Over 60% of our GDP will come from domestic consumption. Our growth will be powered by rising workforce participation, increasing household incomes, and expanding consumption. This growth may not always be dramatic, but it will be organic, stable, and sustainable. That’s the Indian story. And so, it’s time we stop comparing India with China. We are fundamentally very different economies, with very different structures and trajectories.
We are fundamentally very different economies, with
very different structures and trajectories.
India, in fact, cannot be defined with a single brushstroke. If we were to simplify and analyse India’s socio-economic structure, we could think of the country in three segments:
- The Affluent India – About 140 million people with a per capita income of approximately $15,000. In terms of lifestyle and consumption, this group is comparable to Australia—not in population size, of course, but in economic behaviour.
- The Aspiring India – Roughly 300 million people with a per capita income around $3,000, comparable to Indonesia in economic terms.
- Bharat – The remaining one billion citizens, with a per capita income under ₹1 lakh per year, representing the broader, rural and semi-urban population.
These three Indias require three different approaches—three different models of engagement, policy, and development. We must tailor our strategies accordingly if we are to achieve inclusive and sustained growth. Given all these promising developments, the natural question is: Why is India in the global spotlight?
The diversity we possess is unmatched: from agriculture
to AI, the spectrum of skills and potential in India is truly remarkable.
India is gaining attention not just because of its size and growth projections, but for several structural and strategic reasons: First, decisive structural reforms are underway—and more are on the way. Second, investments in capital expenditure (CapEx) are accelerating, both from public and private players. Earlier, the government used to allocate only 19% of its total expenditure to capital expenditure (CapEx). Today, that figure has increased to around 29%. This is money well spent—because CapEx builds future assets, and from these assets, we will derive sustained growth.
The 7Ds
We’re also making meaningful strides in the energy transition. Progress is evident. Add to that a young, digitally savvy population—and we have a major strength. The diversity we possess is unmatched: from agriculture to AI, the spectrum of skills and potential in India is truly remarkable. If I were to capture the key forces propelling India forward, I’d summarise them as the Seven Ds:
- Democracy
- Demography
- Diversity
- Decarbonisation
- Digitalisation
- Determination
- Dependability
These Seven Ds are shaping the India story, and I believe they will continue to be a powerful force for the future.
Leadership for the Future
So, what kind of leadership is required to truly leverage this India story? A few essential leadership principles will guide us forward:
A Higher Purpose: Leadership must begin with purpose. A higher purpose helps navigate the fog of uncertainty. When disruption is constant, purpose becomes your compass.
Trust is the New Currency: Trust is going to be more valuable than ever. And how do we build trust? Through transparency. Transparency fosters trust, and trust enables collaboration. And collaboration will be absolutely critical in the future.
The Sustainability Lens: We must evaluate everything we do through a sustainability lens—economic viability, environmental sensitivity, social inclusiveness, and ethical behavior. This integrated view is non-negotiable for responsible leadership.
Optimism and Responsibility: How do we see the glass—half full or half empty? That mindset matters. We must take responsibility for maintaining optimism. Let’s not be cynical about India’s progress. Let’s believe in it, speak positively about it, and act to make it happen.
Culture over Structure: Every organisation is steered by two forces—culture and structure. When things go wrong, we often tinker with structure. But the root of many issues lies in culture. Culture is defined by the habits and behaviours that are encouraged—or discouraged. Leaders must nurture a culture of learning, ethics, collaboration, and resilience.
Courage to Shape the Future: We need the courage to imagine and shape the future.
Curiosity and Lifelong Learning: In a world changing this fast, only those who keep learning will keep leading. We must all be curious, lifelong learners—open to new ideas, technologies, and ways of thinking.
Partnership is the New Leadership: Leadership will no longer be defined by individual brilliance or institutional might. The future belongs to those who can partner. No single company, no lone leader, can solve the problems of tomorrow alone.
In our own organisation, we’ve forged incredible partnerships in just the last five years—including with competitors—because winning today requires collaboration. This is the future: partnership as leadership. The arrogance of larger companies will be demolished. What will matter is our ability to work together to leverage India’s true potential.
