Globalisation faces challenges, mainly political: Global CEOs

New Delhi: Businesses can override any uneasiness globalisation creates if they are well-structured and diversified, and if the fruits of globalisation are more democratic than they are today — this was the dominating view at a CEO panel discussion during the Global Business Summit on Friday.

Gopichand P Hinduja, co-chairman, Hinduja Group, called the adverse impact of globalisation a game of politics. “...these uncertainties make no difference if businesses are well-structured, diversified structurally and geographically and firms have their ear to the ground,” he said.

Speaking about opportunities in India for global businesses, Hinduja said, “India is a bed of roses but full of thorns,” adding that it needs to do more on ease of business.


Paul Hermelin, chairman and group CEO, Capgemini, sounded a word of caution. “I would be a little less optimistic than my colleagues,” he said, explaining that while globalisation was a “wonderful” opportunity, there were people who feel omitted. “I notice globalisation plays in favour of metropolitan areas and people who live in remote territories do feel left out,” he added.

Explaining a global trend, he said, the Brexit vote didn’t come from London but from Northern UK, same way that in the US elections, the states that voted in favour of Trump were the same, and Yellow Vests are the people who live in suburbs and don’t feel globalisation is for them.

So, Hermelin added, “If we do not address these territorial dimensions, and if we only think we can address metropolitan areas, then there will be a major pushback.”

Deloitte’s global CEO, Punit Renjen, disagreed. “Globalisation is here to stay. What Hermelin is talking about is not globalisation but technological disruption. What is happening in mid-America is not because of globalisation but because politicians use short hand to use globalisation as a tool, but actually this is technological disruption.”

Jonathan Gray, president, Blackstone Group and chairman, Hilton Worldwide, along with Boston Consulting Group chairman Hans-Paul Bürkner, said although the advantages of globalisation and advancement in technology were huge, there were also pressures that needed to be identified.

“Globalisation is under political pressure but this is not its end,” said Gray. He acknowledged that technological advancements had also created an “unease.”

“Companies are looking at a footprint around the world. Globalisation will continue but face changes as it moves from products and services to data information,” said Bürkner. Trade wars are a reality today, he said. “We must take this seriously and focus on certain aspects, but many other aspects continue to push forward. So, globalisation is well and kicking in spite some of the challenges.”

Highlighting how technology has become a gamechanger, Sangita Reddy, joint managing director at Apollo Hospitals, said healthcare was driven by needs of consumers from across the world. She said telemedicine was now reaching millions because of technological advancement.

Ashish Agarwal, senior group president and chief risk officer, YES Bank, pointed to the way banking had changed because of social media and how companies needed to adopt these advancements to scale their businesses. He said the most fundamental change banking was witnessing was the behavioural change with customers.

“Transactions that were happening through brick-and-mortar channels are now through other platforms such as Facebook and Google. That is what the future of banking is,” Agarwal said.

ET Now executive editor Supriya Shrinate moderated the discussion.