In my recent writings, I have often emphasised the importance of “growing your core”. However, as we move further into 2026, a second, equally critical question has begun to dominate my advisory sessions: where in the world should my core be located?
For decades, many businesses in Kerala and the GCC have operated within a “unipolar” comfort zone — with their business presence located either entirely in the GCC or entirely in Kerala.
In the past, I often urged my clients to diversify into other geographic regions while scaling up, both as protection against local recessions and as a way to gain insights into new markets. The GCC was a favourite expansion destination for Kerala-based businesses, and Kerala was a natural base for entrepreneurs in the GCC.
But the world as we knew it has changed. We are currently navigating the volatile final phase of what historians and strategists call the dominant power cycle.
This is the period when the existing global order becomes overstretched, debt-ridden and challenged by rising powers, often leading to a “cleansing storm” of internal and external conflicts.
In such a phase, the most dangerous assumption an entrepreneur can make is that any single geographic region is safe.
Many business owners believe that if they are strong in one geographic region, they are protected. This is a fallacy.
If all your business is tied to the same currency, the same legal jurisdiction and the same geopolitical neighbourhood, you are not diversified — you are concentrated.
When the dominant power cycle reaches its late stage, four things typically happen:
• Currency devaluation: To manage rising debt, dominant powers tend to print money, eroding the value of savings.
• Internal conflict: Growing wealth gaps often lead to populism and sudden regulatory shifts that can quickly turn a profitable sector into a heavily taxed or “non-essential” one.
• Geopolitical fragmentation: Global trade rules weaken and are replaced by regional trade blocs, tariff barriers and protectionist policies.
• Wars: Conflicts between countries can break out, leading to widespread economic and physical devastation.
To remain sustainable in 2026 and beyond, growth should not be limited to adding more business units. It must also involve sufficient geographic diversification.
This means spreading both operational presence and capital across multiple regions, depending on the scale of the business.
One of my clients who adopted this strategy from 2007 onwards expanded as follows:
1993 – Started with one store in Kerala
2005 – Expanded to the rest of India
2007 – Entered the GCC
2013 – Expanded to Southeast Asia
2018 – Entered the US
2023 – Expanded to Europe
2024 – Expanded to Australia and New Zealand
We are living through what could be described as a once-in-a-lifetime transition in global power structures.
In the past, being a “local hero” was often enough to build a lasting business legacy. Today, a local hero who ignores global shifts risks becoming a sitting duck.
Do not wait for a crisis to realise that all your eggs are in one basket.
Just as you would not rely on a single supplier for your entire factory, you should not bet your family’s future on a single geography.
True sustainability in this era lies in the ability to operate comfortably across multiple markets. When one door closes because of the inevitable shifts of history, several others should remain open.
In the world of the contrarian, the best time to build a bridge to a new land is while the sun is still shining on your own.