Indian firms lead on supply chain resilience: 70% diversifying suppliers, report finds

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Indian firms lead on supply chain resilience: 70% diversifying suppliers, report finds

Synopsis

A DP World survey of 451 senior logistics executives finds Indian firms are outpacing global peers on supply-chain resilience — 70% are diversifying suppliers, over half have fully digitalised customer-facing services, and access to trade finance is nearly 20 percentage points stronger than the global average. The data suggests India's structural supply-chain pivot is well underway, driven by geopolitical pressure, PLI incentives, and expanding FTA networks.

Key Takeaways

70 per cent of Indian executives are prioritising supplier diversification, the leading supply-chain strategy, per a DP World report released 31 August .
59 per cent of Indian firms are increasing inventory levels to buffer against global disruptions.
More than half of Indian businesses have fully digitalised customer-facing services, versus fewer than four in ten globally.
57 per cent of Indian respondents report reasonable access to trade finance, compared with 39 per cent globally.
Free Trade Agreements (FTAs) are the top policy priority for trade growth, cited by nearly 46 per cent of executives.
Road network development and multimodal solutions — including rail and coastal shipping — are rising infrastructure priorities.

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.

Point of View

Flagged by nearly half of executives — can keep pace with the ambition. PLI and FTAs can reshape sourcing maps, but without last-mile connectivity, resilience gains risk stalling at the port gate.
NationPress
31 Aug 2026

Frequently Asked Questions

What did the DP World supply chain report on India find?
The DP World report, based on a survey of 451 senior supply-chain and logistics executives, found that 70 per cent of Indian firms are prioritising supplier diversification and 59 per cent are increasing inventory levels to build resilience against global disruptions. Indian businesses outperformed global counterparts across most resilience metrics.
Why are Indian firms focusing on supplier diversification?
Indian firms are diversifying suppliers primarily to reduce exposure to geopolitical conflicts and global supply-chain shocks. The strategy — the top priority among surveyed executives — is part of a broader shift toward structural resilience rather than reactive crisis response.
How does India compare globally on supply-chain digitalisation?
More than half of Indian businesses have fully digitalised their customer-facing services, compared with fewer than four in ten globally. AI is also being deployed for route optimisation, documentation, and customs efficiency at a pace that exceeds the global average.
What is the top policy priority for Indian supply-chain executives?
Free Trade Agreements (FTAs) are the leading policy priority, cited by nearly 46 per cent of executives as the most important lever for further trade growth — ahead of digitalisation and trade facilitation measures.
What infrastructure gaps are Indian logistics firms flagging?
Nearly 46 per cent of logistics executives identified road networks as a priority area given rising trade volumes. Businesses are increasingly adopting multimodal solutions — combining rail and coastal shipping — to compensate for road-network constraints.
Nation Press
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