India’s Inflection Point: Prashant Ruia on Trade Realities, Energy Pragmatism, and Building a Self-Reliant Future 

India’s Inflection Point: Prashant Ruia on Trade Realities, Energy Pragmatism, and Building a Self-Reliant Future 

From the crisp, alpine air of Davos, where the world’s economic and political elite convene, the view of the global landscape is both stark and clarifying. In a candid conversation at the World Economic Forum 2026, Prashant Ruia, the architect behind Essar Group’s strategic resurgence, cut through the prevailing noise to outline a vision grounded not in idealism, but in hard economic viability. His insights reveal a pivotal moment for India and global industry, where disruption is the new constant and opportunity favors the prepared, the pragmatic, and the innovative. 

The Great Trade Unraveling: From Globalization to “Bilateral Realism” 

Ruia immediately identifies the seismic shift in global trade as the defining theme. The decades-long march toward open, multilateral trade, championed by institutions like the WTO, is fragmenting. What’s emerging, he notes, is a world of “bilateral arrangements” and strategic protectionism, largely driven by Western nations—and notably the United States—reckoning with the hollowing out of their manufacturing bases and the resultant socio-political friction. 

“The dichotomy is clear,” Ruia observes. Western economies desire both open borders and robust domestic manufacturing, but these aims are fundamentally at odds when production costs are lower elsewhere. The conclusion is inescapable: retaining core industries will require “some level of protection, whether that’s in the form of import duty or trade barrier.” For global companies like Essar, with significant footprints in the US and UK, this represents a complex operational reality. Yet, Ruia believes the political imperative to preserve jobs and industrial sovereignty will ultimately prevail, reshaping supply chains not on pure cost, but on a mix of cost, security, and strategic alignment. 

Energy Transition: The Triumph of Economic Viability Over Ideology 

Perhaps one of Ruia’s most pointed critiques is directed at the previously unquestioned dogma of the energy transition. He recalls the recent past where a “flip a switch” mentality prevailed—a belief that fossil fuels could be rapidly and entirely supplanted by green alternatives. As an industry insider, he knew this was a fallacy. 

“Fossil fuels are going to be there for a long period of time,” he states, signaling a necessary correction in the global conversation. The critical metric, he argues, is not ideological purity but economic viability. The transition will succeed only where green solutions can compete without perpetual, heavy subsidies. He points to India’s own progress in renewable power as a testament to what’s possible when scale and cost align. 

Essar’s own foray into electric and LNG trucks in India serves as a perfect case study. The service is offered “without any subsidy.” The value proposition is simple: a cleaner alternative at no premium. “Every one of them will take it,” Ruia asserts. “Because they want to do good for the environment. But they don’t want to pay more.” This pragmatism—echoed in global political shifts—re-frames the energy challenge: innovation must drive down costs to the point where green is simply the smarter economic choice. 

India’s Critical Gap: The Imperative for an “R&D Economy” 

Moving to India’s prospects, Ruia identifies a profound structural weakness: the lack of a deep-rooted research and development culture. While India has excelled as a master executor and a burgeoning alternative supply chain, its reliance on imported technology is a long-term vulnerability. “We are happy buying the best technology from whoever has it,” he says, contrasting this with the innovation engines of the US and China. 

The solution, in his view, requires a national mission akin to the successful push for a startup ecosystem. It demands a tripartite effort: government policy and grants, private sector commitment to long-term, potentially non-linear returns, and academic collaboration. He highlights India’s space program as a beacon—proof that groundbreaking, cost-competitive innovation is “doable” when focused nationally. Building this “R&D economy” is no longer optional; it is the key to transitioning from being a participant in global supply chains to a defining shaper of them. 

Essar’s Strategic Blueprint: Focused Bets in a Re-Industrializing World 

Having navigated a monumental deleveraging, Essar is now in “look ahead” mode. Ruia outlines a disciplined strategy, doubling down on four core sectors where the group holds deep institutional knowledge: Energy, Metals & Mining, Infrastructure, and Technology. These are not scattered bets; they are interconnected plays on global macro-trends. 

• Energy: The focus is on building a modern, integrated energy company. This includes downstream refining, retail expansion, and a bold push into future-ready areas like Sustainable Aviation Fuel (SAF) plants. It’s a balanced portfolio that acknowledges the enduring role of hydrocarbons while actively building the bridges to a lower-carbon future. 

• Metals & Mining: The highlight here is a massive, nearly $2.5 billion investment in Minnesota, USA, building a pellet plant for green steel production. This is a strategic move that aligns with Western “friend-shoring” objectives and taps into the demand for low-carbon industrial inputs. 

• Infrastructure: In India, this means ports and power, capitalizing on the government’s world-class infrastructure push. Globally, it morphs into data centers, viewed through an infrastructure lens—securing land, power, and connectivity. Essar is developing a colossal pipeline of up to 2 gigawatts of data center capacity across the UK and India. 

• Technology: This spans from network infrastructure (through its listed entity, Black Box) to the aforementioned electric mobility platform. It’s about applying technology to hard assets and logistics. 

Ruia envisions India constituting over 50% of the group’s future portfolio, underscoring a powerful conviction in the domestic story. 

India 2026: A Landscape of Unparalleled Opportunity 

When pressed for headwinds, Ruia pauses, finding few. He lists the advantages: demographic dividend, strong fiscal position, vibrant entrepreneurship, and policy stability. “If you can’t do it and succeed in this environment… you have nobody else to blame but yourself,” he remarks. Even potential setbacks like a stalled US trade deal are seen as surmountable, with exports finding new markets. 

Looking at the reform agenda, he sees a landscape where the “big building blocks” are in place. The constant need for policy tweaks to enable investments has diminished. Sectors are open, international capital is flowing into banking and insurance, and capital markets are deep and maturing. While always room for improvement exists, the signal to private capital is clear: the runway for growth is long, clear, and welcoming. 

The Bottom Line: A New Era of Pragmatic Confidence 

Prashant Ruia’s Davos commentary paints a picture of a world shedding illusions. The era of frictionless globalization is over, replaced by a more complex, bilateral order. The energy transition is being recalibrated from a moral crusade to an engineering and economic challenge. For India, the path to sustained supremacy requires bridging the critical innovation gap. 

For Essar, and for discerning investors, the strategy that emerges is one of disciplined focus, pragmatic investment in viable technologies, and a steadfast belief in India’s structural story. It is a playbook written not for a fleeting cycle, but for a new economic age defined by realism, resilience, and the relentless pursuit of viability. In this world, the winners will be those who build, innovate, and execute on the ground—precisely where Essar is planting its flags.