Tata group's Chandrasekaran flags supply chain issues amid tariff headwinds

Tata Group Chairman N. Chandrasekaran has said that the reciprocal tariffs imposed by former U.S. President Donald Trump are likely to lead to bilateral negotiations and a long-term reshaping of global supply chains.

Speaking at the Rakesh Jhunjhunwala Memorial Lecture on Tuesday, Chandrasekaran remarked that the real challenge isn’t the tariffs themselves but the reversal of a decades-old globalization model. “For over 60 years, global supply chains thrived under minimal trade barriers. Companies produced where it was cost-effective and sold where there was demand. That model is now being redefined,” he said.

He emphasized that changing the supply chain infrastructure won't happen overnight due to constraints like talent availability, raw material sourcing, and logistical dependencies. “It’s a structural shift, not a short-term disruption,” he noted.

Chandrasekaran believes tariffs won't return to zero and some trade barriers will persist. How these changes will settleuniformly or through bilateral deals remains uncertain.

Despite the evolving global trade dynamics, he highlighted India's strong economic position and rising demand across sectors like healthcare, infrastructure, education, and hospitality. “India is well-placed for sustained growth,” he concluded.