Indian businesses redesigning supply chain to capture new growth opportunities: Report
Indian businesses are actively redesigning supply chains for resilience and growth. Supplier diversification and strategic inventory are key priorities for companies. Technology adoption and entry into new markets are also significant drivers. India's trade growth will be defined by resilience and connectivity. Businesses are positioning inventory closer to customers for better market access.
Mumbai, India - Indian businesses are actively re-evaluating their supply chains, with the aim of enhancing resilience and capitalizing on emerging growth prospects, according to a recent report. The DP World's India Country Report 2026, which polled 451 senior supply chain and logistics executives, highlights a shift towards supplier diversification, strategic inventory management, and digitalization as primary priorities.
The report underscores that India's upcoming trade growth trajectory will hinge on resilience, connectivity, and adaptability to an increasingly unpredictable global trade landscape. Furthermore, Indian businesses are placing greater emphasis on resilience compared to their international counterparts. Diversifying suppliers ranks highest among the business priorities, followed by increasing inventory levels and strategic nearshoring.
Technological adoption and entering new markets also play significant roles, with over half of Indian businesses having fully digitized customer-facing services, a stark contrast to the global average of less than four in ten businesses. Artificial intelligence (AI) is already contributing to improved route optimization, streamlined documentation, and efficient customs procedures, thereby bolstering supply-chain resilience.
DP World's report also notes that India's evolving trade landscape is further fueling this transformation. In addition to enhancing domestic manufacturing through the Production-linked Incentive (PLI) scheme, the country's ongoing trade partnerships are creating new sourcing and market opportunities. Since 2022, India has established trade agreements with the UAE, Australia, the UK, European Free Trade Association (EFTA) states, Oman, New Zealand, and the European Union.
Negotiations are also underway with the Gulf Cooperation Council (GCC) and Israel, with free trade agreements (FTAs) emerging as the top policy priority for fostering further trade growth.
Access to trade finance is also stronger in India, with 57% of surveyed executives reporting reasonable availability, compared to 39% globally. As businesses diversify sourcing and expand into new markets, positioning inventory closer to customers becomes increasingly crucial. India's trade narrative is currently transitioning to a new phase, with companies reimagining their supply chains to navigate disruptions and seize growth opportunities.
Rizwan Soomar, CEO & MD of Subcontinent, Central Asia, Levant, and Egypt at DP World, emphasizes that India's trade story is entering a new phase, driven by the redesigning of supply chains to build resilience and unlock growth. Businesses are increasingly relying on diversified sourcing, strategic inventory placement, digitalization, and access to new markets to adapt to and thrive in a rapidly changing global trade environment.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
