In an interview with CNBC-TV18 at the World Economic Forum 2026 in Davos, Manny Maceda, Chair of Bain & Company, expresses a blend of optimism and pragmatism regarding India’s role in a fragmented global landscape.
Dismissing the notion of a strict US-China divide, Maceda identifies India as a significant player in its own right—capitalizing on its capacity to nurture various bilateral ties while enhancing its domestic market, infrastructure, and advancements in sectors like AI and energy.
He emphasizes that India has emerged as a top-priority market for multinational corporations and global investors, surpassing China in terms of foreign direct investment.
For Bain, this signifies a long-term commitment to India—not only as a rapidly expanding client base but also as a hub for global talent and capability.
Simultaneously, Maceda points out the disruptive implications of AI for global capability centers, urging companies to maintain foresight and resilience in the face of technological and geopolitical challenges.
Read More | Bain & Company’s Manny Maceda states that CEOs must revisit strategies for a fragmented world order
Here are the refined excerpts from the interview.
Q: In light of Carney’s medium power thesis, do you believe that medium powers, or countries caught between the US-China rivalry, will benefit from current developments?
A: I would place India firmly in this context. I wouldn’t categorize India as a small power; it has the largest population globally and represents a highly attractive market. Recognizing this complexity is essential, as the world isn’t merely two poles. India’s strategy of fostering multiple bilateral relationships is advantageous and necessary.
It’s worth noting that countries are not the only ones employing this strategy; companies are adapting their approaches too, determining where to operate, which suppliers to engage, and how to manage talent. Over recent years, we’ve seen India rise as a priority market for multinationals and investors alike. It’s a robust domestic market, improving its infrastructure and capabilities in AI and energy. Notably, India has surpassed China in foreign direct investment, and many continue to hold a positive outlook on India, us included.
Q: Given that Bain is optimistic about India, what are the implications for Bain’s plans in the region?
A: Our focus remains on prioritizing India as a key market. As a global services firm, the domestic market is our top concern. Indian companies are expanding globally, and multinationals are increasingly prioritizing India as well. Additionally, most private equity firms consider India among their top two or three markets.
With this in mind, we aim to support India’s growth by increasing our presence and capabilities here. We maintain a significant capability center in India, making it our second-largest headcount location after the United States, and we foresee this trend continuing.
Returning to your earlier inquiry, the potential impact of AI on tasks performed by Indian capability centers is crucial to contemplate, as we anticipate some disruptions too. Nonetheless, we remain committed to investing in India and look forward to more discussions in the future.
Q: After Davos, do you consider yourself a concerned optimist or a cautious optimist?
A: I identify as an optimist. Nonetheless, I have genuine concerns. These are complex times, influenced by global politics, the rise of AI, and various intersecting challenges. Notably, we must build resilience, preparing for potential worst-case scenarios, which will better prepare us for inevitable challenges.
Q: In your discussions with CEOs leading up to and during Davos, what trends do you observe? Are they maintaining that they cannot afford to wait for global uncertainties to resolve before executing their strategies?
A: I’ve noticed that the major themes CEOs grapple with today have remained relatively consistent over the past few years. AI is a key focus, followed closely by the ongoing shifts in the global order. Additionally, the energy transition poses ongoing challenges during periods of higher capital costs. AI’s real-world applications and the evolving global landscape are deeply intertwined, affecting both strategic choices and contingency planning.
Q: AI remains a focal point here, moving from pilots to large-scale deployment. However, there are questions about its impact on the bottom line. When can we expect to see returns reflected in financials?
A: When considering company valuations, there is an expectation that these investments will pay off. Currently, I estimate that around 20% of companies are beginning to see AI impact their bottom lines. This is most evident in specific functions and tasks where AI can significantly enhance productivity, such as software engineering and customer service. However, scaling AI for more complex tasks requires organizational change and employee adoption.
While it remains to be seen how these advancements will translate into revenue growth and new opportunities, the prevailing sentiment is one of optimism that investments in AI will yield results within the next one to three years.
Q: Are CEOs focused on AI primarily for optimization and efficiency, or are we moving towards more transformative applications?
A: It seems to be a balanced split at 50-50. Transformation means different things for various companies. Many are beginning by reallocating existing technology budgets to AI initiatives, anticipating productivity gains. Initially focusing on efficiency, companies are now considering transformative strategies as they observe the potential for significant change.
The term transformation can be challenging, as companies starting with AI might outpace established firms, resulting in differing trajectories. The intersection of AI with global issues is significant, shaping the new technology stack, which includes elements like dependable energy sources and the advent of large language models. These companies are choosing to invest in AI, driven by the expectation of capturing returns from either cost efficiencies or market expansions, ensuring that these choices align with their geographical strategies.
For the complete discussion, check out the accompanying video.
Also Read | IOC chief dismisses excise hike talk, says no indication yet
