India’s Soft Power Keeps Businesses Standing Tall during Tough Times, says Ajay S. Shriram

WHEN PEOPLE think of India’s soft power, they often cite yoga, cuisine, cinema, or democracy. But the more apt answer is the one rooted in trust, ethical governance, and community-centric models. Indian-origin CEOs steering global companies; Indian conglomerates winning long-term infrastructure contracts abroad; and “Made-in-India” gaining credibility that indicate the dominance of values. These value systems are the cornerstone to not just corporate growth but India’s soft power, too. These are our resilient competitive advantage in hard times. The concept of an “ethical enterprise” was observed in India long before the world benchmarked ESG (environmental, social and governance) practices. Values that bind Philosophically, wealth is a value generated from trust, one that also fuels societal good. Wealth held for the benefit of the community is embedded in our philosophical heritage as implied through the Gandhian concept of trusteeship; the moral compass of dharma and today the sustainability implicit. These values are rooted aptly in Aparigraha (non-possessiveness). In family-owned businesses, these principles have been passed down like heirlooms. In my own family, my great-grandfather Sir Shri Ram embodied this ethos. Joining Delhi Cloth & General Mills (DCM) as a humble accounts cashier in 1909, he went on to transform it into one of India’s most respected industrial enterprises. But his true legacy was not only in textiles, sugar, and chemicals — it was in the institutions he built for society: Shri Ram College of Commerce (1926), Lady Shri Ram College for Women (1956), and numerous vocational and research institutes. For business leaders from his generation, success was inseparable from societal progress. That belief was the foundation of India’s early industrialisation and remains a guiding light for companies like ours today. Values matter more today In today’s volatile world, trust is the scarcest currency. A 2024 Edelman Trust Barometer found that only 62% of global respondents trust businesses to do what is right — a figure that drops further in markets where governance is opaque or inequality is rising. Investors are increasingly scrutinising not just returns, but how those returns are generated. Employees, especially the Gen Z, are choosing employers whose values align with their own. Customers are rewarding brands that act responsibly. In this context, values are not just a matter of heritage — they are a business imperative. A strong ethical foundation is not a constraint on growth; it is a multiplier of resilience. It creates long-term stakeholder loyalty, protects reputations in crises, and differentiates brands in crowded markets. Culture = competitive advantage The Indian business ecosystem has a unique opportunity to integrate cultural capital into modern business strategy. This can be achieved using three models: Trusteeship as governance: Leaders see themselves more than custodians. This mindset strengthens corporate governance because decisions are made with future generations in mind. Dharma as ethical compass: Doing the right thing even when it is difficult or costly is what dharma is all about. In practice, this means transparent dealings, honouring commitments, and treating all stakeholders with fairness. In uncertain markets, this consistency builds trust that no marketing spend can buy. Sustainability through simplicity: India’s tradition of resourcefulness — jugaad when done responsibly — teaches us to innovate within constraints and minimise waste. This is relevant to climate-conscious business models. For example, our work in climate-smart agriculture not only helps farmers adapt to erratic rainfall but also aligns with global sustainability targets. Values and soft power as India’s assets India is home to countless social enterprises that are blending profit with purpose, leveraging technology to deliver affordable service in the areas of healthcare, education, and clean energy. The challenge for India is to ensure that these value systems are not sidelined in the race for growth. Embedding them into business strategy is not only about nostalgia — it is about building an identity that is resilient, distinctive, and globally respected. To the next generation of leaders — whether they are inheriting family enterprises, running public companies, or building startups — their role is more than a passing asset; it is disseminating knowledge and the Indian way of thinking. Trust is the most valuable capital. Profits can be a by-product of purpose, but culture will be the biggest differentiator. In hard times, it is not the strength of strong balance sheets but strong values that keep businesses standing tall. And in that, India has something timeless to share. (The author is Chairman and Senior Managing Director, DCM Shriram Ltd. Views are personal.) Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

India’s Soft Power Keeps Businesses Standing Tall during Tough Times, says Ajay S. Shriram

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