The world pivoted in a new direction at Davos 2026. The 56th annual meeting of the World Economic Forum at Davos was the stage where global leaders announced deep shifts in the international order. Ukraine took a back seat. Greenland was at the centre. And a Board of Peace emerged as a new group that promised peace and security under the leadership of US President Donald Trump.
The main hall of the WEF Congress Centre reverberated with the impact of statements made by President Trump. As he walked out of the hall after announcing the Board of Peace, President Trump paused, looked around at the people lined up to catch a glimpse of the man who was shaking up the world. He stood a few feet away from the cameras held by media and by WEF delegates eager to hear his comments. President Trump spoke quietly and then, with measured step,s walked to his next meeting in the Congress Centre.
Disagreements, disappointments and discussions dominated the Davos week and global leaders joined heads to interpret the impact of geopolitical impact. Deep divisions between the US and Europe were openly visible at the WEF annual meeting. Never in recent years had the world seen cracks emerging and widening in real time within the western alliance that has dominated the world for decades. Davos hosted conversations that could address various contradictions. Leaders were apprehensive about rising uncertainties and were fearful of growing conflicts.
“This is a moment of uncertainty, but also possibility; not a moment to retreat, but a moment to engage,” said Børge Brende, President and CEO, WEF. “The World Economic Forum is not about responding to current events. It is about creating the right conditions that enable us to move forward.”
Decisions And Declarations And A Fragmented World
Decisions and declarations made at Davos will impact the world for years to come. Prime Minister of Canada James Carney was sharp in his reading of the global environment: “It seems that every day we're reminded that we live in an era of great power rivalry, that the rules-based order is fading, that the strong can do what they can, and the weak must suffer what they must.”
He said what the rest of the world had realised a long time ago. “We knew the story of the international rules-based order was partially false, that the strongest would exempt themselves when convenient, that trade rules were enforced asymmetrically. And we knew that international law applied with varying rigour depending on the identity of the accused or the victim,” Carney said. “Great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited.”
It was strikingly evident at Davos that as growth economies of the global south were coming closer, the legacy economies of the global north were fracturing. Carney’s statement indicated that some leaders of the global north were admitting the unfair structure of the world. “This year, Davos has reached a new level. Not only was it the intended platform for dialogue, but it also marked turning points and drove decisions,” said André Hoffmann, Interim Co-Chair, World Economic Forum, and Vice-Chairman, Roche Holding.
Business leaders at Davos debated the twin challenges facing global growth. Rapidly changing AI-led technology and sharp turns in geopolitical equations. Both these shifts are impact business models and value chains. “We believe economic progress should be shared,” said Larry Fink, Interim Co-Chair, World Economic Forum, and CEO, BlackRock. “We believe prosperity should reach further than it has, and we believe institutions like the World Economic Forum still matter in making that happen.”
Global Leaders Signal Resilience
Leaders from key global institutions — Christine Lagarde (ECB), Kristalina Georgieva (IMF), and Ngozi Okonjo-Iweala (WTO) — said that the world economy is showing unexpected resilience despite political turbulence and trade disruptions. Chief executives from North American companies ranging from Nvidia to Salesforce featured prominently in Davos.
Their participation reflected both the continued importance of North American businesses in the global economy and the scale of uncertainty confronting private sector leaders today. Elon Musk, CEO of SpaceX, Tesla and owner of social media platform X, made his first-ever appearance at Davos and stated that "AI will be smarter than all of humanity collectively" by 2030. He foresees building solar-powered AI data centres in space.
European leaders and major EU-based technology executives used Davos 2026 to deliver some of the strongest statements to date on Europe’s need for technological sovereignty, while also acknowledging the political and economic constraints that make it difficult.
Aiman Ezzat (CEO, Capgemini) emphasised Europe must be careful not to overregulate or close itself off. “We have to go for technology adoption as fast as possible… sometimes at the expense of sovereignty.” He warned that too much regulation—especially on AI—would “kill innovation” and drive companies to build elsewhere. Christian Klein (CEO, SAP), said Europe should not attempt to imitate US hyperscalers, but instead focus on sectors where it has strengths, such as manufacturing and life sciences, applying AI to those industries rather than trying to recreate Silicon Valley.
India Recast As Stability Engine
Amid the global confusion, India was recognised as a region of political stability and economic continuity. Top business leaders expressed strong confidence in India’s growth potential. Steve Schwarzman (Blackstone CEO) said India is Blackstone’s “number one market globally in terms of returns” and that the firm acts as an “ambassador for India” due to the strength of its investments across real estate, healthcare, housing, and asset management.
Juvencio Maeztu (IKEA / Ingka Group CEO) reaffirmed the company’s deep commitment to India, calling the country central to IKEA’s long-term growth strategy. Richard Teng (Binance CEO) noted India has become number one globally in blockchain adoption, with global crypto players increasingly taking India’s regulatory and market direction seriously.
Leaders recognised India’s growth path. India’s macroeconomic strength, reaffirmed by the IMF’s upgraded 7.3 per cent growth forecast for FY26, positioned it as a core pillar of global stability. India’s push in AI, semiconductors, logistics, renewables, and large-scale infrastructure was widely seen as a model for emerging market industrialisation.
India’s reputation has transformed from an emerging market to a central global force, a fast-growing economy, a strategic technology player, a trusted and stable geopolitical partner, and one of the most attractive destinations for global capital. |
