Indian businesses must prepare for a world shaped by AI, climate change and global tensions: CII

Indian industry will have to navigate three powerful long-term forces—geopolitical shifts, technological disruption and climate change—to sustain growth and competitiveness, Confederation of Indian Industry (CII) President R Mukundan said in an interview with CNBC-TV18.

Mukundan said businesses are operating in an increasingly complex environment as the world transitions from a unipolar to a multipolar order, creating fresh geopolitical challenges and uncertainties.

At the same time, rapid advances in technology, including

artificial intelligence

and new materials, are reshaping industries and business models.

"The whole technology footprint is going to continue to change, and that can either be a fulcrum for further growth or, if you don't act well, it will become a challenge in the way forward," he said.

Mukundan identified sustainability and climate change as the third major force that will influence economic and industrial activity over the next two decades.

"This is going to be with us for the next 15 to 20 years," he said while referring to climate-related challenges.

He noted that changing weather patterns and increasing uncertainty around monsoons are already affecting economic planning. Referring to the current season, he said both the spatial and temporal distribution of rainfall had emerged as concerns.

Mukundan said India had entered the kharif season with relatively comfortable reservoir levels and fertiliser stocks, helping mitigate some immediate risks. He also stressed the need to support farmers in affected regions through livelihood protection measures, fodder and water assistance, and access to short-duration crop varieties suited to delayed sowing.

Beyond climate adaptation, Mukundan said India's long-term success would depend on remaining globally competitive amid technological and geopolitical changes.

According to him, competitiveness must remain the central focus for both industry and policymakers if India is to maintain its growth momentum and strengthen its position among the world's fastest-growing major economies.