India to Remain Fastest Growing Economy Despite Slowdown: Chandrasekaran

Tata Group Chairman N. Chandrasekaran expressed confidence in India’s economic future, stating that despite a temporary slowdown, the country will continue to lead as the world’s fastest-growing economy.

Addressing the global alumni meet of NIT Trichy in Chennai, Chandrasekaran emphasized that India’s growth remains resilient, driven by key global transitions aligned with the nation’s strengths.

"Even with a moderation in growth this year, India will still grow better than any other country," said Chandrasekaran, pointing to India’s strong economic fundamentals. He highlighted that the shift to renewable energy, evolving global supply chain dynamics, and the rise of artificial intelligence (AI) are key trends where India has a distinct advantage.

Chandrasekaran further elaborated on the role of AI in India’s economic future, predicting 2025 to be a transformative year for the sector. With anticipated investments in small language models (SLMs), he noted that these AI technologies would be more energy-efficient, cost-effective, and provide faster results. "This will be a phenomenal year for AI," he said, underscoring the potential for India to play a leading role in the field.

The decline of China’s economic growth also presents India with a unique opportunity. Once contributing nearly 30% to global growth, China’s share has now dropped below 25% and is expected to fall further. "China’s economy is facing significant challenges, particularly in its real estate sector," Chandrasekaran explained, noting that this decline will create more room for India to assert itself on the global stage.

He also addressed the challenges India will face, such as inequality, access to essential services, labor productivity, and job creation. However, he highlighted the nation’s strengths, particularly its robust digital infrastructure. "India’s digital systems, including payments, Aadhar, healthcare, and retail banking, are among the finest in the world," he stated, acknowledging both the opportunities and obstacles that lie ahead.

On the energy front, Chandrasekaran praised India’s progress in renewable energy, with the share of renewable-based electricity reaching 45%, up from 30% in the previous decade. However, he pointed out that to meet global carbon reduction targets, more work is needed. "Between 2019 and 2024, global carbon emissions increased by 3.3%, which is a setback in the fight against climate change," he noted.

Chandrasekaran also discussed India’s emerging role in the global supply chain, particularly in light of shifting geopolitics. "The world is looking for alternative supply chains, and India is well-positioned to lead with its scale, balance, entrepreneurial spirit, and government support," he said. The recent disruptions in global shipping, such as the attack on cargo ships in the Red Sea, have increased costs and time, underscoring the need for a reliable and secure alternative—a role India is primed to play.

As India navigates these transitions, Chandrasekaran remains optimistic about the country’s future, confident that the slowdown is temporary and that India’s strategic advantages will enable it to continue on its path toward sustained growth and global leadership.