India reinventing supply chains amid global disruptions
In the face of rising costs, disrupted trade routes, and evolving global policies, Indian businesses are reshaping their supply chains through strategic resilience, technology adoption, and market diversification.
From tariff hikes and shipping delays to shifting trade routes and new policy frameworks, global supply chain disruptions are forcing Indian businesses to rethink their strategies. Rather than being passive victims of these challenges, companies are proactively adapting — leveraging multimodal logistics, exploring alternative markets, and embracing digitalisation to stay competitive.
The global supply chain has been rocked by multiple disruptions — from Red Sea shipping delays and rising U.S. tariffs to fluctuating freight rates and geopolitical instability. Indian businesses, deeply embedded in global trade, face rising costs, transit delays, and shifting market dynamics. However, rather than succumbing to these pressures, they are actively adapting through diversified logistics strategies, policy-driven resilience, and technology adoption.
"The increased tariffs would raise the cost of shipping goods to the US, India's largest export market. This could reduce the competitiveness of Indian products like jewellery, pharmaceuticals, and petrochemicals, potentially shrinking demand."
Christian Roeloffs, Container xChange
Rising costs and delays
Global supply chain disruptions have created a complex and volatile environment for Indian businesses. With shipping delays mounting, tariff hikes eroding competitiveness, and capacity constraints driving up costs, companies are facing shrinking profit margins and growing uncertainty.
One of the most immediate challenges stems from the impact of US tariffs on Indian exports. Christian Roeloffs, Co-founder and CEO of Container xChange, warns of the economic strain these trade policies impose. "The increased tariffs would raise the cost of shipping goods to the US, India's largest export market. This could reduce the competitiveness of Indian products like jewellery, pharmaceuticals, and petrochemicals, potentially shrinking demand," he said.
Container xChange is a digital marketplace for container trading and leasing.
Beyond tariffs, global shipping disruptions have further exacerbated trade uncertainties. The ongoing Red Sea crisis, for instance, has forced vessels to reroute around the Cape of Good Hope, significantly increasing transit times and costs. Sathya Menon, Group CEO of Blue Ocean, underlines the severity of the situation. He noted, "The Red Sea is a lifeline for 80% of India’s Europe-bound exports, and rerouting via the Cape of Good Hope isn’t just about time. It’s also about costs rising, contracts crumbling, and trust under fire."
Meanwhile, Shailesh Sapale, Co-Founder & Chief Revenue Officer of Trezix, underscores the financial burden on exporters. "Average shipping times have increased by 30-45 days, resulting in 20-30% higher inventory costs for exporters. Additionally, rising U.S. tariffs have led to a 15-20% decline in demand for certain Indian products in the U.S. market," he said.
Trezix is a SaaS platform that helps importers and exporters manage documentation, approvals, licenses, shipment tracking, and business metrics.
These disruptions are not just isolated events but indicators of a deeper transformation in global trade. As businesses grapple with rising costs and logistical uncertainties, they are being forced to rethink supply chain strategies and seek new solutions. The need for resilience and adaptability has never been greater.
"The Red Sea is a lifeline for 80% of India’s Europe-bound exports, and rerouting via the Cape of Good Hope isn’t just about time. It’s also about costs rising, contracts crumbling, and trust under fire."
Sathya Menon, Blue Ocean
Shift to logistics resilience
As global supply chain disruptions continue to drive up costs and cause delays, Indian businesses are adapting their logistics strategies to enhance resilience. The focus is shifting from reliance on a single mode of transport to a more flexible, multimodal approach, integrating road, rail, sea, and air freight to ensure efficiency and cost-effectiveness. Simultaneously, companies are optimising container utilisation, leveraging inland waterways, and investing in digital logistics solutions to improve supply chain visibility.
Ishant Agarwal, President, CJ Darcl Logistics, emphasises the growing importance of multimodal transportation in navigating the current challenges. "The industry is shifting towards multimodal transportation to counter capacity constraints. We combine multiple modes—road, rail, and sea—to offer customers cost-effective and timely solutions," he said.
This shift is not just about diversification but also about efficiency. Businesses are increasingly turning to digital tools and data-driven logistics planning to optimise costs and reduce delays. Additionally, container utilisation has emerged as a critical factor in improving supply chain efficiency. Dhruv Taneja, Founder & Global CEO, Matchlog, explains how businesses are using innovative approaches to reduce inefficiencies. "Optimising container utilisation and leveraging inland waterways are helping businesses cut costs and improve transit reliability," he said.
MatchLog Solutions eliminates container dry runs by matching import containers to export bookings.
Anish Jha, Managing Director at Kuehne+Nagel India, Sri Lanka, and the Maldives, highlights the use of air freight for time-sensitive shipments. "Many businesses are turning to multimodal solutions such as Sea-Air and Air-Sea transport to balance cost efficiency and transit time. For instance, companies importing electronics from East Asia are routing shipments via Singapore or Dubai, reducing lead times compared to ocean-only routes," he said.
By integrating multimodal logistics, enhancing digital capabilities, and improving asset utilization, Indian businesses are not only navigating immediate challenges but also strengthening their long-term supply chain resilience. These strategies are enabling companies to remain competitive in an unpredictable global trade environment.
"Average shipping times have increased by 30-45 days, resulting in 20-30% higher inventory costs for exporters. Additionally, rising US tariffs have led to a 15-20% decline in demand for certain Indian products in the US market."
Shailesh Sapale, Trezix
Alternative trade routes, markets
With traditional shipping routes facing unprecedented challenges, Indian exporters are actively seeking alternative trade corridors and new market opportunities to maintain supply chain stability. The Red Sea crisis, volatile freight rates, and shifting global trade policies have accelerated this diversification, pushing businesses to strengthen ties with emerging markets and leverage new logistics pathways.
Roeloffs highlights the growing shift towards trade routes in Southeast Asia and the Middle East as businesses seek to de-risk their supply chains. "We're already seeing enhanced efforts to reroute cargo through alternative markets like the Middle East, Indian Subcontinent, and Southeast Asia," he said.
A key development in this shift is the India-Middle East-Europe Economic Corridor (IMEC), a strategic initiative aimed at reducing reliance on conventional maritime routes. Jha of Kuehne+Nagel sees this corridor as a crucial alternative for exporters. "IMEC integrates rail and sea networks, offering a more resilient alternative to traditional shipping lanes. Once operational, it could reduce transit times by up to 40%," he said.
Menon of Blue Ocean explains how companies are leveraging regional ports to improve trade efficiency. "Textile exporters in Tiruppur aren’t just staring at Europe anymore; they’re hustling to Nigeria and Kenya, where sales shot up 22%. Pharma giants are courting Brazil and Mexico, with exports up 17%," he said.
While these adjustments provide much-needed flexibility, they also introduce new logistical complexities. Infrastructure development, regulatory alignment, and cost considerations will determine the long-term effectiveness of these alternative trade routes. Indian exporters must carefully evaluate these emerging opportunities, ensuring that new pathways not only mitigate current challenges but also enhance overall supply chain resilience.
"India’s new trade agreements, particularly with ASEAN and the UAE, have diversified its trading partnerships, reducing dependency on any single market."
Abhishek Maiti, 1Lattice
Two sides of government policies
The Indian government has taken significant steps to strengthen supply chain resilience, introducing policies aimed at expanding trade opportunities, boosting domestic manufacturing, and enhancing logistics infrastructure. However, while these initiatives provide much-needed support to businesses, they sometimes create unintended hurdles, particularly for small and medium enterprises (SMEs) reliant on imported raw materials.
One of the most impactful policy moves has been India’s expansion of trade agreements with key global partners. Abhishek Maiti, Director - Industrial Goods & Services at 1Lattice, highlights how these agreements are helping businesses diversify their trade relationships. "India’s new trade agreements, particularly with ASEAN and the UAE, have diversified its trading partnerships, reducing dependency on any single market."
​1Lattice is a technology-enabled decision support organisation utilising AI/ML to provide actionable insights for businesses. ​
While such agreements open new market opportunities, domestic policies aimed at protecting Indian manufacturers can sometimes have the opposite effect. High import duties, designed to encourage local production, have increased costs for businesses that depend on imported inputs. Menon warns of the challenges this creates. "High import duties aimed at shielding domestic manufacturers sometimes backfire, making raw materials more expensive for SMEs."
Agarwal of CJ Darcl Logistics highlights the role of India's logistics policies in trade competitiveness. "The government has laid a strong framework of policies to build a robust logistics infrastructure, reduce logistics costs, and improve the nation’s Logistics Performance Index ranking. While these policies aim to enhance India’s export competitiveness, balancing trade protectionism with ease of doing business remains key," he said.
This delicate balance between fostering self-reliance and maintaining global competitiveness remains a critical challenge for Indian policymakers. While government incentives and trade reforms are helping businesses navigate global uncertainties, ensuring that protectionist measures do not hinder growth will be key to building a truly resilient supply chain.
"Cloud-based logistics solutions are enabling real-time tracking, predictive analytics, and automation, helping businesses navigate volatility with greater control."
Amit Maheshwari, Softlink Global
Tech-defined future
As global supply chains grow increasingly complex, Indian businesses are turning to technology to enhance operational efficiency, improve visibility, and mitigate risks. With volatile freight rates, shifting trade policies, and unpredictable disruptions, the ability to make data-driven decisions in real-time has become a necessity rather than a luxury.
Amit Maheshwari, Founder & CEO, Softlink Global, emphasises how digital freight management is revolutionising logistics. "Cloud-based logistics solutions are enabling real-time tracking, predictive analytics, and automation, helping businesses navigate volatility with greater control," he said.
Beyond tracking and automation, technology is also shaping long-term supply chain resilience. Smitha Shetty, Regional Director - APAC, Achilles Information, sees digital transformation as the key to sustaining growth in an unpredictable market. She said, "Supply chain resilience is not just a response to disruption but a foundation for sustained growth. Data-driven strategies and real-time visibility will define future success."
Taneja, emphasises the role of AI-driven logistics. "AI-driven route planning and predictive analytics are allowing companies to mitigate delays and optimise costs. Businesses that adopt real-time tracking solutions and digital freight booking platforms gain a significant advantage in supply chain agility," he said.
From AI-driven demand forecasting to blockchain-enabled transparency and IoT-powered smart tracking, logistics technology is evolving at a rapid pace. Businesses that invest in these innovations will not only enhance efficiency but also future-proof their supply chains against emerging disruptions. The shift toward digital resilience is no longer optional—it is essential for staying competitive in the global trade landscape.
Adapting to long-term shifts
The global supply chain landscape is undergoing a fundamental transformation. The disruptions witnessed today—from shipping delays to shifting trade policies—are not temporary setbacks but indicators of a new trade order. The future of logistics will be defined by regionalisation, sustainability-driven strategies, and the adoption of smarter, technology-driven supply chain solutions.
One of the biggest shifts is the move away from just-in-time supply chains to more resilient, regionally distributed networks. Taneja, highlights this trend. "The days of ultra-lean, just-in-time supply chains are fading. Businesses are now prioritizing resilience over cost savings," he said.
India, as a rapidly growing trade and logistics hub, stands to benefit from these shifts—provided it makes the right investments in infrastructure and policy frameworks. Jha sees this as a critical opportunity for India’s logistics sector. "As global trade patterns shift, India is well-positioned to emerge as a major logistics and manufacturing hub, provided it invests in infrastructure and policy alignment," he said.
Shetty stresses the importance of sustainability in logistics. "With an increasing push towards carbon-neutral policies and environmentally aware consumers, Indian businesses and logistics providers must integrate green logistics practices to remain competitive," she said.
The future will belong to businesses that embrace agility, digital transformation, and sustainability. Whether it is diversifying supply chains, leveraging new trade corridors, or adopting green logistics practices, companies that proactively adapt to these long-term shifts will not only survive but thrive in an increasingly complex global trade environment.
The global supply chain is undergoing a fundamental transformation, and Indian businesses are at the heart of this change. From mitigating rising costs and diversifying trade routes to leveraging technology and rethinking logistics strategies, companies are proving their resilience in an unpredictable world. While challenges remain, those who invest in adaptability, innovation, and sustainability will be best positioned to thrive in the new trade order. The road ahead may be uncertain, but for businesses willing to evolve, it is filled with opportunity.
