India is uniquely positioned to drive economic expansion through two powerful engines - a rapidly growing middle class and a rising role in global trade and manufacturing, making it one of the few countries capable of achieving both at scale, Bain & Co worldwide managing partner and CEO Christophe De Vusser told Vinod Mahanta in an interview. Edited excerpts.
Now that the US and China are back at the table, does it augur well for India, which has been trying to position itself as a neutral and stable growth destination?
Let me take a step back and look at the fundamental forces shaping the world and how India fits in. We see four major trends driving the global economy for the coming decades. The first is labour automation through AI, transforming both physical and cognitive work. The second is the triple challenge of energy: ensuring availability, affordability, and decarbonisation. The third is the rise of a post-global world. Globalisation has peaked, and India will play a critical role in this new order. The fourth is the inflationary impact of these shifts, coupled with shrinking workforces, leading to higher capital costs. While there will be an ebb and flow of tariffs, ultimately there will be an equilibrium between US, China and India -- and India stands out with its dual engines of growth: a rising middle class and expanding role in global trade and manufacturing.
India is pretty much the only country which can do both at scale.
With Washington playing the tariff card and linking trade to geopolitical alignment, how should India and Indian companies respond?
The reality of the future will be a more post-global world with higher tariffs and shifting trade boundaries. For Indian companies, the question is how to operate within that framework while leveraging India's dual engine of growth, a rising consumer base and a strong manufacturing opportunity. They must ask whether their cost structures are competitive and their products meet global expectations. Success stories like iPhone manufacturing show what is possible but flexibility and adaptability will be key as tariffs and trade rules will continue to change.
As global firms pivot from China, India looks well positioned to gain, yet the shift remains slow. According to global boardrooms, where does the hindrance lie-at policy level, regulation inconsistency or on-ground execution?
To drive global demand, India needs quality, cost competitiveness and products that global buyers truly want. The question is, should it follow the traditional China-plus-one model or leapfrog ahead into the next phase of manufacturing? The future belongs to robotics, small-scale precision and advanced technology. India can craft its own path by investing in skills, innovation and efficiency. If it does, it can capture a far greater share of global manufacturing and shape the next generation of industrial growth.
Despite a global dealmaking slowdown, India keeps attracting long-term capital. Is this confidence in its fundamentals or simply a search for safer growth havens?
Money ultimately flows to fundamentals. Investors don't come to India because they have nowhere else to go, they come because India's fundamentals are strong. It is one of the few places in the world with real scale in consumer demand growth. Populations are shrinking in Europe and China, and even the US is slowing, but India's demographics and rising middle class make its demand story durable. The second engine is manufacturing and trade. In a post-global world, India has a huge opportunity to capture a larger share of global production and exports if it delivers on cost competitiveness and product quality. From a private equity perspective, the fundamentals align. India still has room to grow its M&A activity, which stands at just 2-3% of GDP compared with around 5% globally. Together, these drivers of consumption growth, manufacturing opportunity and maturing capital markets make India one of the most compelling investment stories of the decade.
Bain India, which let go of more than 150 professionals last year, seems to be finding its footing again but is the worst truly over?
We made the necessary corrections to ensure we stay on a healthy, long-term growth path.
As I said, India is an important part of our global future and our second-largest talent base worldwide. The India practice has consistently delivered healthy double-digit growth for us. Our industry is cyclical but through cycles we continue to underwrite that double-digit trajectory. We've seen it in the past, and we expect it to continue. Globally, we always ensure that supply and demand stay balanced.
Given that lines between strategy, technology and AI are blurring, how do you see the consulting landscape evolving from here?
Every company must rethink strategy, business models and technology adoption if they want to successfully navigate major shifts in business. That's where we come in: helping clients transform with AI at the core, guiding both strategic and organisational change. Transformation isn't just about technology; it's about people and trust. Our strength lies at the intersection of strategy, technology and human change, a proposition that continues to fuel our double-digit growth.
With McKinsey caught up in the opioid scandal in the US and BCG involved in the Gaza relocation plan, is there a question to be asked about the moral compass of the world's top management consultants?
If you look at where we are today as an industry, our risk policies are stronger than ever in the history of consulting. Of course, we always depend on how responsibly everyone operates within that framework. From a risk standpoint, consulting now meets the highest standards it has ever achieved. There is greater scrutiny, with the media and public paying closer attention, but that only reinforces our commitment to uphold the highest ethical and professional standards.
Traditional strategy firms like McKinsey and Bain are moving deeper into tech and AI, while tech players like IBM and Accenture dominate digital transformation. The Big Four are offering integrated solutions, and AI-first startups are quickly gaining ground with clients. Will the traditional positioning pyramid collapse in the long term?
The premium segment, including firms like McKinsey, BCG and Bain, will continue to operate at the intersection of strategy, technology and large-scale business and organisational transformation. That space requires global scale and deep multidisciplinary expertise. Alongside it, there will always be another segment focused on technology implementation, the system integrators and tech service providers, which is a different strategic space. Over time, this distinction will become clearer and will further strengthen the premium consulting model.
The obituary of consulting has been written many times, with the rise of in-house strategy teams, the internet, technology firms expanding into advisory and now AI. Yet each time, the industry has evolved and come back stronger. So what's different this time, or are we simply witnessing the next reinvention of consulting in the age of AI?
What's important for consulting is that we remain at the forefront of the trends shaping the world. We have a unique vantage point, seeing across industries and helping clients achieve results and lead in their sectors. Every major shift, from the rise of corporate strategy teams to computers, the internet, and now large language models, has raised questions about the relevance of consulting. Yet one truth endures: the pursuit of competitive advantage is timeless. Large language models can inform but they cannot think. They can enable but they cannot define how a company wins. True competitive edge comes from reimagining how to serve customers better, manage costs smarter, and build more agile, customer-focused organisations. That remains a fundamentally human effort and that is where consulting continues to matter.
Now that the US and China are back at the table, does it augur well for India, which has been trying to position itself as a neutral and stable growth destination?
Let me take a step back and look at the fundamental forces shaping the world and how India fits in. We see four major trends driving the global economy for the coming decades. The first is labour automation through AI, transforming both physical and cognitive work. The second is the triple challenge of energy: ensuring availability, affordability, and decarbonisation. The third is the rise of a post-global world. Globalisation has peaked, and India will play a critical role in this new order. The fourth is the inflationary impact of these shifts, coupled with shrinking workforces, leading to higher capital costs. While there will be an ebb and flow of tariffs, ultimately there will be an equilibrium between US, China and India -- and India stands out with its dual engines of growth: a rising middle class and expanding role in global trade and manufacturing.
India is pretty much the only country which can do both at scale.
With Washington playing the tariff card and linking trade to geopolitical alignment, how should India and Indian companies respond?
The reality of the future will be a more post-global world with higher tariffs and shifting trade boundaries. For Indian companies, the question is how to operate within that framework while leveraging India's dual engine of growth, a rising consumer base and a strong manufacturing opportunity. They must ask whether their cost structures are competitive and their products meet global expectations. Success stories like iPhone manufacturing show what is possible but flexibility and adaptability will be key as tariffs and trade rules will continue to change.
As global firms pivot from China, India looks well positioned to gain, yet the shift remains slow. According to global boardrooms, where does the hindrance lie-at policy level, regulation inconsistency or on-ground execution?
To drive global demand, India needs quality, cost competitiveness and products that global buyers truly want. The question is, should it follow the traditional China-plus-one model or leapfrog ahead into the next phase of manufacturing? The future belongs to robotics, small-scale precision and advanced technology. India can craft its own path by investing in skills, innovation and efficiency. If it does, it can capture a far greater share of global manufacturing and shape the next generation of industrial growth.
Despite a global dealmaking slowdown, India keeps attracting long-term capital. Is this confidence in its fundamentals or simply a search for safer growth havens?
Money ultimately flows to fundamentals. Investors don't come to India because they have nowhere else to go, they come because India's fundamentals are strong. It is one of the few places in the world with real scale in consumer demand growth. Populations are shrinking in Europe and China, and even the US is slowing, but India's demographics and rising middle class make its demand story durable. The second engine is manufacturing and trade. In a post-global world, India has a huge opportunity to capture a larger share of global production and exports if it delivers on cost competitiveness and product quality. From a private equity perspective, the fundamentals align. India still has room to grow its M&A activity, which stands at just 2-3% of GDP compared with around 5% globally. Together, these drivers of consumption growth, manufacturing opportunity and maturing capital markets make India one of the most compelling investment stories of the decade.
Bain India, which let go of more than 150 professionals last year, seems to be finding its footing again but is the worst truly over?
We made the necessary corrections to ensure we stay on a healthy, long-term growth path.
As I said, India is an important part of our global future and our second-largest talent base worldwide. The India practice has consistently delivered healthy double-digit growth for us. Our industry is cyclical but through cycles we continue to underwrite that double-digit trajectory. We've seen it in the past, and we expect it to continue. Globally, we always ensure that supply and demand stay balanced.
Given that lines between strategy, technology and AI are blurring, how do you see the consulting landscape evolving from here?
Every company must rethink strategy, business models and technology adoption if they want to successfully navigate major shifts in business. That's where we come in: helping clients transform with AI at the core, guiding both strategic and organisational change. Transformation isn't just about technology; it's about people and trust. Our strength lies at the intersection of strategy, technology and human change, a proposition that continues to fuel our double-digit growth.
With McKinsey caught up in the opioid scandal in the US and BCG involved in the Gaza relocation plan, is there a question to be asked about the moral compass of the world's top management consultants?
If you look at where we are today as an industry, our risk policies are stronger than ever in the history of consulting. Of course, we always depend on how responsibly everyone operates within that framework. From a risk standpoint, consulting now meets the highest standards it has ever achieved. There is greater scrutiny, with the media and public paying closer attention, but that only reinforces our commitment to uphold the highest ethical and professional standards.
Traditional strategy firms like McKinsey and Bain are moving deeper into tech and AI, while tech players like IBM and Accenture dominate digital transformation. The Big Four are offering integrated solutions, and AI-first startups are quickly gaining ground with clients. Will the traditional positioning pyramid collapse in the long term?
The premium segment, including firms like McKinsey, BCG and Bain, will continue to operate at the intersection of strategy, technology and large-scale business and organisational transformation. That space requires global scale and deep multidisciplinary expertise. Alongside it, there will always be another segment focused on technology implementation, the system integrators and tech service providers, which is a different strategic space. Over time, this distinction will become clearer and will further strengthen the premium consulting model.
The obituary of consulting has been written many times, with the rise of in-house strategy teams, the internet, technology firms expanding into advisory and now AI. Yet each time, the industry has evolved and come back stronger. So what's different this time, or are we simply witnessing the next reinvention of consulting in the age of AI?
What's important for consulting is that we remain at the forefront of the trends shaping the world. We have a unique vantage point, seeing across industries and helping clients achieve results and lead in their sectors. Every major shift, from the rise of corporate strategy teams to computers, the internet, and now large language models, has raised questions about the relevance of consulting. Yet one truth endures: the pursuit of competitive advantage is timeless. Large language models can inform but they cannot think. They can enable but they cannot define how a company wins. True competitive edge comes from reimagining how to serve customers better, manage costs smarter, and build more agile, customer-focused organisations. That remains a fundamentally human effort and that is where consulting continues to matter.
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