India's evolving role in global supply chains

Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(VIII)| September 2025 27 India’s evolving role in global supply chains Mahesh Eknath Vidhate1, Dr.H.G.Vidhate2 1,2Anandrao Dhonde Alias Babaji College, Kada, Ashti, Beed. Dr. BAMU Aurangbad Manuscript ID: JRD -2025-170906 ISSN: 2230-9578 Volume 17 Issue 9 (VIII) Pp. 27-30 Sept. 2025 Submitted:15 Aug. 2025 Revised: 25 Aug. 2025 Accepted: 10 Sept. 2025 Published: 30 Sept. 2025 Abstract: In recent years, India has emerged as a key player in the reconfiguration of global supply chains, driven by shifting geopolitical dynamics, rising costs in traditional manufacturing hubs, and global efforts to diversify sourcing strategies. This paper explores the factors contributing to India’s evolving role in global supply networks, including policy interventions such as the Production Linked Incentive (PLI) schemes, infrastructure development under initiatives like Make in India and Bharatmala, and the country’s strategic positioning in global trade agreements. The analysis highlights sector-specific opportunities in electronics, pharmaceuticals, textiles, and automotive manufacturing, while also examining the challenges that continue to hinder India’s full integration—such as high logistics costs, regulatory hurdles, and skill shortages. Case studies of global firms expanding their operations in India underscore the country’s growing attractiveness as a supply chain destination. The study concludes that while India is well-positioned to become a global manufacturing and supply chain hub, sustained policy reforms, investment in human capital, and technological adoption are essential for long-term success. Keywords: India, Global Supply Chains, Manufacturing, Make in India, Production Linked Incentive (PLI), Infrastructure Development, Foreign Direct Investment (FDI), Logistics, Trade Policy, Economic Reforms, Geopolitics Introduction Global supply chains have undergone a dramatic transformation in recent years, driven by factors such as rising geopolitical tensions, technological advancements, disruptions caused by the COVID-19 pandemic, and the increasing need for supply chain resilience. As global companies seek to diversify their sourcing and manufacturing bases beyond China—a trend commonly referred to as the "China+1" strategy—India has emerged as a compelling alternative With its large domestic market, growing industrial base, and a young, skilled workforce, India is uniquely positioned to capitalize on the shifting global economic landscape. Government initiatives such as Make in India, Atmanirbhar Bharat, and Production Linked Incentive (PLI) schemes have been launched to boost domestic manufacturing, attract foreign direct investment (FDI), and integrate India more deeply into global value chains.India’s evolving role in global supply chains is not only a response to external shifts but also a reflection of internal economic reforms and infrastructural development aimed at improving ease of doing business and reducing logistic bottlenecks. However, despite this potential, India still faces several challenges—such as high logistics costs, regulatory complexity, and gaps in industrial capabilities—that must be addressed to fully realize its global ambitions.This paper aims to examine the various factors driving India’s changing role in global supply chains, assess its current capabilities, highlight key sectoral opportunities, and identify challenges that need to be overcome for India to become a major global supply chain hub. Literature Review The role of India in global supply chains has gained considerable attention in recent years, particularly in the context of global shifts away from overreliance on China. Several scholars and policy analysts have examined the structural changes, policy reforms, and strategic Quick Response Code: Website: https://jrdrvb.org/ DOI: Creative Commons (CC BY-NC-SA 4.0) This is an open access journal, and articles are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Public License, which allows others to remix, tweak, and build upon the work noncommercially, as long as appropriate credit is given and the new creations ae licensed under the idential terms. Address for correspondence: Mahesh Eknath Vidhate, Anandrao Dhonde Alias Babaji College, Kada, Ashti, Beed. Dr. BAMU Aurangbad How to cite this article: Mahesh Eknath Vidhate, H.G.Vidhate (2025). India’s evolving role in global supply chains. Journal of Research & Deveopment, 17(9), 27-30 Original Article Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(VIII)| September 2025 28 opportunities that position India as a potential hub for global manufacturing and supply chain integration. 1. Global Supply Chain Shifts and the “China+1” Strategy According to Baldwin (2016), globalization has evolved from trade in final goods to complex global value chains (GVCs) where different production stages occur in different countries. The COVID-19 pandemic and rising USChina trade tensions have exposed vulnerabilities in these GVCs, leading to a shift toward diversification—a trend identified by Evenett and Baldwin (2020) as a move toward "resilient regionalism." As part of this trend, multinational corporations are increasingly adopting a “China+1” strategy, in which India is a favored alternative due to its scale and democratic framework (Singh & Thomas, 2021). 2. India’s Policy Interventions and Economic Reforms The Indian government has implemented several initiatives to attract investment and integrate into global supply chains. The Production Linked Incentive (PLI) scheme, introduced in 2020, has been analyzed as a gamechanger for sectors like electronics, pharmaceuticals, and automobiles (Mehrotra, 2021). Similarly, the Make in India and Atmanirbhar Bharat campaigns aim to strengthen domestic manufacturing capabilities (Kumar & Rao, 2022). The World Bank’s Doing Business Report (2020) notes improvements in India’s regulatory environment, especially in starting a business and resolving insolvency. However, studies such as Banga and Kumar (2022) argue that while policy reforms are promising, implementation gaps and bureaucratic delays still hinder outcomes. 3. Infrastructure and Logistics Performance India’s logistics costs, estimated at 13–14% of GDP, remain higher than those in competing economies like China (8%) and the EU (6–7%). The Logistics Performance Index (LPI) by the World Bank (2023) ranks India 38th globally, showing improvement but also highlighting the need for better infrastructure and digitization. The development of Dedicated Freight Corridors, Sagarmala, and Bharatmala projects have been recognized as critical enablers for supply chain efficiency (Sharma & Banerjee, 2023). 4. Sector-Specific Opportunities and Case Studies India’s rise in electronics manufacturing—particularly due to Apple and Samsung expanding assembly operations—is discussed in reports by McKinsey (2023), which predict India could capture $300 billion in electronics exports by 2026. The pharmaceutical sector, already established globally as a key API supplier, saw expanded global interest during the pandemic (Patel et al., 2021). Research Methodology 1. Research Approach This study follows a qualitative and exploratory research approach to understand the evolving role of India in global supply chains. The objective is to analyze policy developments, sector-specific trends, and structural challenges using secondary data from credible sources. 2. Data Collection Methods 1. The research relies primarily on secondary data from the following sources: 2. Government publications (e.g., Ministry of Commerce & Industry, NITI Aayog, Invest India) 3. Reports from international organizations (e.g., World Bank, IMF, WTO, UNCTAD) 4. Industry reports (e.g., McKinsey, Deloitte, KPMG, EY) 5. Academic journals and scholarly articles 6. News media and trade publications (e.g., The Economic Times, Business Standard) 7. Case studies of companies like Apple, Samsung, and pharmaceutical firms operating in India 3. Scope of the Study 1. Timeframe: Focuses on developments from 2015 to 2025, with emphasis on post-COVID-19 shifts (2020 onwards) 2. Sectors covered: Electronics, pharmaceuticals, textiles, automotive, and renewable energy 3. Geographic scope: India’s role in global supply chains with comparisons to key competitors (China, Vietnam, Indonesia) 4. Data Analysis Techniques 1. Thematic analysis to identify recurring patterns and themes (e.g., supply chain diversification, policy effectiveness, infrastructure bottlenecks) 2. Comparative analysis to assess India’s competitiveness relative to other emerging economies 3. Case study method for understanding real-world examples of global companies investing or shifting operations to India 5. Limitations  The study is based on secondary data; there is no primary data collection (e.g., surveys or interviews)  Limited availability of long-term data on newer government schemes like the PLI  Rapidly evolving geopolitical and economic conditions may affect the accuracy of current trends Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(VIII)| September 2025 29 Findings  Based on the analysis of secondary data, policy documents, industry reports, and case studies, the following key findings have emerged regarding India's evolving role in global supply chains: 1. India Is Gaining Traction as an Alternative to China  The global “China+1” strategy has created significant opportunities for India, particularly in sectors like electronics, pharmaceuticals, textiles, and automotive components.  Multinational companies such as Apple, Samsung, and Foxconn have either expanded or announced plans to increase manufacturing capacity in India. 2. Government Incentives Are Attracting Global Investment  The Production Linked Incentive (PLI) schemes have incentivized global players to set up manufacturing in India. Early evidence suggests rising exports in sectors like mobile phones, pharmaceuticals, and solar modules.  Make in India and Atmanirbhar Bharat have contributed to policy alignment and investor confidence, though implementation challenges remain. 3. Infrastructure Development Is Improving but Still Lagging  Projects such as Sagarmala, Bharatmala, and the Dedicated Freight Corridors are improving logistics efficiency.  However, India’s logistics costs remain high (13–14% of GDP), compared to global benchmarks (e.g., China at ~8%), limiting export competitiveness. 4. Sector-Specific Growth Is Evident  Electronics manufacturing has seen rapid growth, with India becoming the second-largest mobile phone producer in the world.  Pharmaceutical exports have increased post-COVID, with India supplying over 50% of global vaccine demand during the pandemic.  The renewable energy sector, particularly solar component manufacturing, is attracting investment due to global climate commitments and domestic demand. 5. India’s Institutional Reforms Have Improved the Business Climate  Reforms such as GST, insolvency and bankruptcy code, and labor law simplification have improved India’s position in the World Bank's Ease of Doing Business rankings.  Despite progress, regulatory delays and bureaucratic red tape continue to hinder efficient supply chain operations. 6. India Is Emerging as a Digital Supply Chain Player  India’s advancements in digital infrastructure (e.g., UPI, ONDC, and e-logistics platforms) are enabling real-time supply chain visibility, especially in retail and e-commerce.  Digital integration is becoming a competitive advantage, particularly in SME participation in global trade.  Global Perception of India Is Shifting Positively  International companies and governments increasingly view India as a strategic partner for resilient and diversified supply chains.  Trade agreements under negotiation (e.g., with the EU and UK) and participation in platforms like the Indo-Pacific Economic Framework (IPEF) reflect this shift. Conclusion India’s role in global supply chains is undergoing a significant transformation, driven by a combination of global geopolitical shifts, domestic policy reforms, and increased interest from multinational corporations in diversifying their production bases. The “China+1” strategy, accelerated by the COVID-19 pandemic and rising global trade tensions, has opened a strategic window of opportunity for India to position itself as a major manufacturing and export hub. Government initiatives such as Make in India, Atmanirbhar Bharat, and the Production Linked Incentive (PLI) schemes have provided strong policy backing to encourage investment and scale in key sectors like electronics, pharmaceuticals, automotive, and renewable energy. Infrastructure development projects and improvements in the ease of doing business have further enhanced India’s appeal as a supply chain destination. However, despite this positive momentum, several structural challenges remain. High logistics costs, regulatory inefficiencies, and gaps in workforce skills continue to hinder India’s full integration into global value chains. Additionally, competition from other emerging economies such as Vietnam, Indonesia, and Mexico means that India must continue to improve its business environment to stay competitive. In conclusion, India holds immense potential to emerge as a leading global supply chain hub. Realizing this potential will require sustained policy implementation, targeted investment in infrastructure and human capital, and stronger global trade integration. If these areas are addressed effectively, India can play a central role in building more resilient, diversified, and future-ready global supply chains. Journal of Research and Development A Multidisciplinary International Level Referred and Double Blind Peer Reviewed, Open Access ISSN : 2230-9578 | Website: https://jrdrvb.org Volume-17, Issue-9(VIII)| September 2025 30 References (APA Style) 1. Banga, R., & Kumar, D. (2022). India's prospects in global value chains: Opportunities and challenges. UNCTAD. https://unctad.org/ 2. Baldwin, R. (2016). 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