Path to global supply chains through manufacturing and logistics innovation

By Staff Report May 12, 2025 11:18 am IST

Building a future-proof supply chain requires advanced manufacturing clusters, adoption of Industry 4.0 technologies, and continuous investment in workforce skills. Ajay Rao, Founder & CEO at Emiza Inc., highlights the importance of India’s role in the global supply chain.

Global supply chains are undergoing a seismic shift, one driven by geopolitical pressures and evolving trade dynamics. The resurgence of tariff policies under US President Donald Trump, particularly targeting Chinese imports, has catalysed a reconfiguration of global trade networks. In response, businesses across the world are rethinking their supply chain strategies, diversifying manufacturing hubs, and building greater resilience. India is emerging not just as an alternative to China but as a potential strategic nexus within this transformed global ecosystem.

For India, it’s a chance to redefine its role in the global order. The potential is immense, but realising it will depend on the strength of three foundational pillars:

Manufacturing excellence: The bedrock of global competitiveness

Manufacturing is fundamental to the transformation of any supply chain. For India, the task is clear: scale is important, but the true challenge is to manufacture with the precision, sustainability, and agility required by global enterprises. Simply offering low-cost production is no longer enough. The new global standard demands operational excellence, eco-conscious practices, and transparency at every step of the supply chain.

Achieving this requires more than just expanding production lines. It necessitates the creation of advanced manufacturing clusters, widespread adoption of Industry 4.0 technologies, strengthening of the supplier ecosystem, and continuous investment in workforce skills. By embedding quality, speed, and innovation into its manufacturing DNA, India can compete at the highest global levels. Without this manufacturing transformation, India risks missing out on the broader supply chain opportunities unfolding before it.

Building a future-proof supply chain ecosystem

While robust manufacturing is crucial, it must be complemented by an equally strong logistics ecosystem. Historically, India’s logistics sector has been fragmented and inefficient, often hindering the smooth flow of goods across the country. True transformation means evolving from a basic operational necessity to a strategic differentiator that can provide a competitive edge on the global stage.

Encouragingly, market dynamics show strong potential. As per Grand View Research, India’s logistics market is projected to increase from USD 228.4 billion in 2024 to approximately USD 357.3 billion by 2030, with a compound annual growth rate (CAGR) of 7.7%. Additionally, the supply chain management sector is anticipated to reach revenues of USD 2,328.7 million by 2030, growing at a strong CAGR of 15.6%.

With this momentum, India has a significant opportunity to strengthen its role in global trade. According to Mordor Intelligence, the freight and logistics sector is expected to grow from USD 349.4 billion in 2025 to USD 545.6 billion by 2030. One of the key drivers of this transformation is the rise of third-party logistics (3PL) providers, with India’s 3PL market expected to expand by USD 16.77 billion between 2023 and 2028.

This momentum is promising, but it must be harnessed with intention. The supply chains of tomorrow will be digital, predictive, and capable of real-time visibility. To unlock their potential, India must invest in multimodal transport hubs, AI-powered logistics platforms, and smart warehousing solutions. Integrated, resilient supply chains are no longer optional; they are prerequisites for India’s global aspirations.

Policy execution: The enabler of sustainable growth

Even the most advanced manufacturing and logistics systems will fall short without a strong policy framework. Government initiatives such as Make in India, the National Logistics Policy, and the Production Linked Incentive (PLI) scheme are taking the right steps, but the true challenge lies in their effective execution.

To achieve success, India must focus on critical enablers like upgrading port and airport infrastructure, accelerating national freight corridors, improving last-mile connectivity, streamlining tax policies, and digitising regulatory processes.

However, infrastructure alone is not enough. India must prioritise technological integration, sustainable logistics practices, and the development of a skilled, future-ready workforce. The government can speed up this transformation by offering targeted subsidies for sustainable supply chain solutions and cutting-edge logistics technologies. A unified, cross-sector policy strategy is vital to establishing a smooth and globally competitive supply chain network, which will ultimately bolster India’s standing in the international market.

Conclusion

India is in a prime position to seize a rare, transformative opportunity. With its demographic strength, growing digital infrastructure, and an increasingly robust industrial base, the country has the potential to spearhead the next phase of global supply chains. Although competition is intense, India’s efforts to modernise its manufacturing and logistics sectors, supported by strong policy execution, will be crucial in establishing its leadership in the global market.

By embracing operational excellence and fostering seamless coordination across sectors, India can adapt to shifting global dynamics and shape them. The future of India’s supply chain ecosystem is bright, and with swift, decisive action, India will redefine its position in the global economy for years to come.