India's Supply Chain Transformation: Strategies for global impact

Abstract

As global firms explore ways to mitigate risks associated with over-reliance on China, complete decoupling is seen as challenging due to the intricate interdependencies within global supply chains. However, de-risking — by diversifying suppliers and production bases — seems to be a more practical approach. India is at a critical stage in its economic growth, aiming to become a strong alternative to China in the global supply chain for companies looking to diversify risks while staying operationally efficient. However, integrating into global supply chains comes with unique challenges that demand a strategic approach to operations and supply chain management. This article discusses a few strategies that could eventually contribute to the broader socio-economic transformation. India’s supply chain ecosystem is unique, and simply replicating strategies from other regions may not be effective. Factors such as infrastructure, labour market dynamics, and regulatory environments differ significantly from those in countries like China. Therefore, India must create a distinct value proposition that encourages global firms to integrate it into their supply chains. This requires implementing policies that support infrastructure development and nurture technological capabilities to enhance supply chain integration and foster interdependence.