Indian firms lead on supply chain resilience: 70% diversifying suppliers, report finds
Synopsis
Key Takeaways
Indian businesses are aggressively restructuring their supply chains to withstand global disruptions, with 70 per cent of executives prioritising supplier diversification and 59 per cent building up inventory buffers, according to a report released on Monday, 31 August. The findings, drawn from a survey of 451 senior supply-chain and logistics executives, indicate that Indian firms are placing a measurably stronger emphasis on resilience than their global counterparts.
Key Findings from the Survey
The report, published by logistics and trade enablement firm DP World, identifies supplier diversification as the single leading priority among Indian businesses, followed by inventory build-up and friend-shoring — the practice of sourcing from geopolitically aligned partners. Technology adoption and market expansion round out the top strategic responses to supply-chain volatility.
Notably, more than half of Indian businesses have fully digitalised their customer-facing services, compared with fewer than four in ten globally — a gap that underscores India's accelerating logistics modernisation.
Role of AI and Digitalisation
Artificial intelligence is already delivering tangible gains across route optimisation, trade documentation, and customs processing, the report noted. These improvements are directly strengthening supply-chain resilience rather than remaining confined to back-office functions. The pace of AI integration among Indian logistics firms is outpacing the global average, according to the survey data.
Policy Priorities: FTAs and Trade Finance
Free Trade Agreements (FTAs) emerged as the top policy priority for sustaining trade growth, cited by nearly 46 per cent of executives — ahead of digitalisation and trade facilitation measures. The report also highlighted stronger access to trade finance in India: 57 per cent of respondents reported reasonable availability of trade finance, compared with just 39 per cent globally.
The Production-Linked Incentive (PLI) scheme was cited as reinforcing domestic manufacturing capacity, while expanding bilateral trade relationships are opening new sourcing and market corridors for Indian firms.
Infrastructure and Multimodal Solutions
Road network development remains a pressure point, with nearly 46 per cent of logistics executives identifying it as a priority given rising trade volumes. Businesses are increasingly turning to multimodal solutions — combining rail and coastal shipping with road freight — to reduce bottlenecks and improve cost efficiency.
Rizwan Soomar, CEO and Managing Director for Subcontinent, Central Asia, Levant and Egypt at DP World, said: 'Diversified sourcing, strategic inventory, digitalisation and access to new markets are becoming increasingly important in navigating disruption.'
The report added that by investing in integrated infrastructure, digital capabilities and trade facilitation, India can strengthen business competitiveness and unlock opportunities across emerging global trade corridors. With geopolitical uncertainty showing no signs of abating, Indian supply-chain leaders appear to be betting on structural adaptation over reactive crisis management.