Tata Sons chairman N Chandrasekaran: Problem at present is not tariffs, issues stem from ...

Tata Sons Chairman N Chandrasekaran has pointed out that the real hurdles in global trade today are less about tariffs and more about the breakdown of the long-standing globalisation model. Speaking at an event in Mumbai, he underscored the challenges of unwinding deeply integrated supply chains and the wider impact this shift is having on global trade dynamics.
Chandrasekaran noted that globalization has long relied on producing goods where it is most efficient and selling them where demand exists. However, recent geopolitical tensions and policy shifts have disrupted this model, creating challenges in sourcing talent, raw materials, and maintaining interconnected supply chains. "Supply chains are integrated, and things cannot change overnight," he remarked.
While acknowledging that some US tariffs are likely to remain, Chandrasekaran stated, "I personally believe it [tariffs] is not going to go back to zero because once something is announced, some part of it will stay." He added that the resolution of these issues might vary, either through uniform global agreements or bilateral negotiations.
Chandrasekaran also shared updates on the Tata Group's expansion plans, revealing that the company is building seven new factories in sectors such as electric vehicles, batteries, and semiconductors. These facilities, set to open by 2027, are expected to create employment for 500,000 people, underscoring the group's commitment to innovation and growth.