<p data-path-to-node="3"><b data-path-to-node="3" data-index-in-node="0">NEW DELHI / MUMBAI</b> — Indian commercial enterprises and industrial manufacturers are aggressively overhauling their end-to-end supply chain architectures to insulate operations from external disruptions and capture emerging global trade opportunities, according to the newly released <i data-path-to-node="3" data-index-in-node="283">India Country Report 2026</i> published by DP World’s Global Trade Observatory (GTO).</p><p data-path-to-node="4">Based on an in-depth survey of 451 senior supply chain directors and logistics executives across core manufacturing and distribution sectors, the comprehensive research indicates that Indian businesses are placing significantly higher strategic emphasis on resilience, inventory buffers, and localized footprint expansion than their international peers.</p><h6 data-path-to-node="6"><b>Sourcing Diversification and Inventory Expansion Lead Strategic Priorities</b></h6><p data-path-to-node="7">The report details a definitive shift away from single-source dependencies and hyper-lean "just-in-time" paradigms toward multi-tiered sourcing networks and strategic stockholding:</p><ul data-path-to-node="8"><li><p data-path-to-node="8,0,0"><b data-path-to-node="8,0,0" data-index-in-node="0">Supplier Diversification:</b> Ranked as the primary supply chain priority, cited by <b data-path-to-node="8,0,0" data-index-in-node="80">70% of Indian executives</b> (compared to 51% globally). When asked about the catalyst behind widening supplier bases, <b data-path-to-node="8,0,0" data-index-in-node="195">42% of executives cited new technology adoption</b> and <b data-path-to-node="8,0,0" data-index-in-node="247">36% highlighted entry into new regional markets</b>.</p></li><li><p data-path-to-node="8,1,0"><b data-path-to-node="8,1,0" data-index-in-node="0">Elevating Strategic Inventory Buffers:</b> Over <b data-path-to-node="8,1,0" data-index-in-node="44">59% of respondents reported actively increasing localized buffer inventory levels</b>, positioning stock closer to key domestic consumption corridors and international export nodes.</p></li><li><p data-path-to-node="8,2,0"><b data-path-to-node="8,2,0" data-index-in-node="0">Friend-Shoring vs. Near-Shoring:</b> Indian enterprises showed a strong preference for friend-shoring to allied trading nations. In contrast, traditional near-shoring was prioritized by only 26% of Indian businesses compared to 32% globally, as India's sheer geographic scale and expanding internal industrial base make proximity-based near-shoring less imperative than multi-hub domestic distribution.</p></li></ul><h6 data-path-to-node="10"><b>Trade Sentiment and Policy Tailwinds</b></h6><p data-path-to-node="11">Frontline Indian business sentiment reflects remarkable optimism despite persistent macro volatility:</p><ul data-path-to-node="12"><li><p data-path-to-node="12,0,0"><b data-path-to-node="12,0,0" data-index-in-node="0">Optimistic Growth Horizons:</b> An overwhelming <b data-path-to-node="12,0,0" data-index-in-node="44">79% of Indian executives expect trade growth to accelerate in 2026</b>, substantially outpacing the global average of 54%, even as <b data-path-to-node="12,0,0" data-index-in-node="171">60% anticipate high or very high policy uncertainty</b>.</p></li><li><p data-path-to-node="12,1,0"><b data-path-to-node="12,1,0" data-index-in-node="0">Catalytic Free Trade Agreements (FTAs):</b> Free Trade Agreements emerged as the top policy priority for accelerating future commerce, cited by nearly half of respondents. Shippers highlighted the operational benefits of bilateral and multilateral pacts concluded since 2022—including agreements with the UAE, Australia, the UK, EFTA nations, Oman, New Zealand, and the European Union—alongside ongoing negotiations with the GCC and Israel.</p></li><li><p data-path-to-node="12,2,0"><b data-path-to-node="12,2,0" data-index-in-node="0">Trade Finance Access:</b> Domestic credit accessibility remains a competitive differentiator, with <b data-path-to-node="12,2,0" data-index-in-node="95">57% of Indian executives reporting robust availability of trade finance</b>, compared to only 39% across global benchmarks.</p></li><li><p data-path-to-node="12,3,0"><b data-path-to-node="12,3,0" data-index-in-node="0">Production-Linked Incentives (PLI):</b> Union Government PLI schemes continue to expand the supplier ecosystem, empowering domestic component manufacturers to replace imported inputs with local alternatives.</p></li></ul><h6 data-path-to-node="14"><b>Digitalization and Multimodal Migration</b></h6><p data-path-to-node="15">The study underscores the rapid integration of digital intelligence and physical logistics across the subcontinent:</p><ul data-path-to-node="16"><li><p data-path-to-node="16,0,0"><b data-path-to-node="16,0,0" data-index-in-node="0">Digital Lead:</b> More than <b data-path-to-node="16,0,0" data-index-in-node="24">53% of Indian firms have fully digitalized customer-facing interfaces</b> (vs. 38% globally), while <b data-path-to-node="16,0,0" data-index-in-node="120">45% have achieved full end-to-end digital visibility and coordination across their supply chains</b> (vs. 34% globally).</p></li><li><p data-path-to-node="16,1,0"><b data-path-to-node="16,1,0" data-index-in-node="0">AI Deployment:</b> Artificial intelligence tools are actively delivering tangible bottom-line value, specifically in dynamic route optimization, predictive cargo slotting, automated customs filing, and real-time exception resolution.</p></li><li><p data-path-to-node="16,2,0"><b data-path-to-node="16,2,0" data-index-in-node="0">Multimodal Infrastructure Demand:</b> As domestic freight volumes scale, <b data-path-to-node="16,2,0" data-index-in-node="69">46% of logistics leaders identified road network debottlenecking as an urgent priority</b>, driving an accelerating migration of heavy industrial payloads onto intermodal rail corridors, Dedicated Freight Corridors (DFCs), and coastal shipping loops.</p></li></ul><h6 data-path-to-node="18"><b>Executive Perspectives</b></h6><p data-path-to-node="19">Commenting on the report's findings, Rizwan Soomar, CEO &amp; Managing Director for Subcontinent, Central Asia, Levant, and Egypt at DP World, stated:</p><blockquote data-path-to-node="20"><p data-path-to-node="20,0"><i data-path-to-node="20,0" data-index-in-node="0">"India's trade narrative is entering an advanced phase of structural maturity. Businesses are no longer merely responding to localized logistics friction—they are actively redesigning their supply networks from the ground up to establish lasting resilience and capture market share. Diversified sourcing, strategic inventory buffers, advanced digitalization, and frictionless access to new international trade lanes are vital tools in navigating modern geopolitical volatility. By seamlessly bridging deepwater maritime ports, inland container depots, Free Trade Warehousing Zones (FTWZs), and smart technologies, we are strengthening India’s global competitiveness and accelerating its integration into high-value global supply chains."</i></p></blockquote><p data-path-to-node="21">The report concludes that while customs clearance automation and modernized warehousing infrastructure remain critical areas for ongoing investment, India's proactive policy framework, strong capital liquidity, and aggressive digital transformation position the subcontinent as an indispensable anchor for global trade resilience.</p>