From expansion to execution: India’s next supply chain challenge

Investment in logistics and warehousing has accelerated, infrastructure is improving and the country is playing a more prominent role in global manufacturing and trade. From large-scale industrial growth to the continued rise of e-commerce, supply networks across India are evolving at pace, supported by policy initiatives and increasing private sector investment. But as this growth continues, can capability keep pace with ambition? While India’s supply chains are expanding at speed, they are also becoming more intricate, more interconnected and more exposed to external pressures than ever before. The past three years have not been defined by a single moment of disruption, but by a series of overlapping pressures that continue to reshape how supply chains operate. Global trade tensions and shifting sourcing strategies have accelerated the reconfiguration of supply routes, with India increasingly positioned as part of “China+1” strategies. For many organisations, this has created new opportunities, but also new expectations around reliability, scalability and consistency of supply. At the same time, volatility in energy prices has had a direct impact on transportation and manufacturing costs, a critical factor in a market where margins are often tightly managed. Fluctuations in fuel costs continue to influence everything from last-mile delivery to long-haul freight, making cost planning more complex and less predictable. Shipping disruption has also been felt acutely. Congestion at major ports, capacity constraints and, more recently, instability across key global shipping corridors have contributed to longer lead times and greater unpredictability for Indian importers and exporters alike. For organisations reliant on international trade, this has reinforced the need to build greater flexibility into supply planning. Domestically, the picture is equally complex. While infrastructure programmes such as Gati Shakti are improving connectivity, many organisations continue to navigate inconsistencies in first- and last-mile logistics, particularly when operating beyond major urban centres. Differences in infrastructure quality, regional regulations and supplier capability can all impact the efficiency of end-to-end operations. In this environment, supply chain decisions are becoming more tightly linked to business performance. Choices around sourcing, supplier networks and logistics routes are shaping how reliably organisations can operate across a diverse