"When you add tariffs, you get tremendous uncertainty," says Sir Martin Sorrell
For the next few years, the world will look very different from the last 30–40 years of relatively peaceful free trade, growth above 3%, low inflation, and low interest rates. Now we are looking at slower growth, higher inflation, higher rates, and a fragmented world, says Sir Martin Sorrell, Founder and Executive Chairman of S4Capital/Monks.
ADVERTISEMENT
Sir Martin Sorrell, Founder and Executive Chairman of S4Capital/Monks, said the growing noise around tariffs and trade friction is adding to global uncertainty and reshaping supply chains, making markets like India increasingly attractive.
"Tariffs are layered on top of bigger geopolitical issues like US–China relations, Russia’s objectives, and Iran’s activities in the Middle East. These three issues are extremely difficult to deal with, despite what leaders may say. When you add tariffs, you get tremendous uncertainty," Sorrell stated.
"For the next few years, the world will look very different from the last 30–40 years of relatively peaceful free trade, growth above 3%, low inflation, and low interest rates. Now we are looking at slower growth, higher inflation, higher rates, and a fragmented world," he added.
In that environment, finding growth becomes harder, which makes markets like India much more attractive. At the same time, efficiency and effectiveness are critical — AI, quantum computing, blockchain, and the metaverse will be vital tools. Simply put, companies must be selective about which markets they enter and be super-efficient everywhere they operate.”
Asked what this means for Indian advertisers, he noted that the opportunities remain significant, though challenges persist. “The backdrop for India is extremely strong. GDP growth of 5–6%, being the fifth largest economy, and favorable demographics compared to China give India an advantage. The big challenge is infrastructure — both physical and digital. Delhi and Mumbai, for instance, are already under huge strain. Productivity will be affected if infrastructure doesn’t keep up with growth.”
In the past, the veteran advertising leader has also praised India’s leadership and branding on the global stage.
“Indian Prime Minister Narendra Modi understands branding and is a great ad man,” Sorrell said. “He (Modi) understands branding. He's a great ad man,” the S4 Capital chairman told Moneycontrol in Davos on January 20, adding India is front and centre at the World Economic Forum.
“Indian representation is very strong. It is strong not only in India but increasingly abroad,” he said. “Also, the projections are that by 2050, India will be the third-largest economy in the world. It's already the most populous economy in the world. Its birth rate, although it is coming down, is still strong enough to increase the population. I am an increasingly raging Indian bull.”
Last year too, Sorrell had described Modi as the ultimate master of branding, noting that amid geopolitical issues involving the US and China, the Russia-Ukraine situation, and the conflict in the Middle East, India emerged as the go-to market and an alternative to China in Asia.
