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 19 India's Evolving Role in Global Supply Chains Dr. Sambhaji Manikrao Gate Assistant Professor and Head, Department of Commerce, Shikshan Maharshi Guruvarya R. G. Shinde, Mahavidyalaya, Paranda Dist-Dharashiv (Osmanabad) M.S, INDIA. Email: [email protected] Manuscript ID: JRD -2025-170904 ISSN: 2230-9578 Volume 17 Issue 9 (VIII) Pp. 19-22 Sept. 2025 Submitted:15 Aug. 2025 Revised: 25 Aug. 2025 Accepted: 10 Sept. 2025 Published: 30 Sept. 2025 Abstract India's growing prominence in global supply chains is driven by its strategic location, large labor force, and government initiatives. The country's economy has demonstrated remarkable resilience, achieving an annual GDP growth of 8.15% for the fiscal year 2023-2024. With its robust domestic consumption, manufacturing expansion, and infrastructure development, India is poised to become a pivotal player in global supply chains. This paper discusses India's evolving role in global supply chains, highlighting key factors driving its growth, government initiatives, challenges, and opportunities. India's GDP growth rate is projected to be around 6.7% in 2025, driven by strong domestic demand and robust GST reforms. The economy has shown resilience, with a growth rate of 7.8% in the April-June quarter of 2025, the fastest in five quarters. Here's a breakdown of the growth projections. India has recorded a trade deficit with nine of its top 10 trading partners in FY 202324.The country is working to diversify its trade relationships and strengthen economic ties with key partners. India's export growth potential is vast, with projections indicating a significant increase in exports driven by various factors. Key highlights include. Keywords: India; Global Supply Chains; Trade Statistics; Export Growth; Import Trends; Production Linked Incentive (PLI); National Logistics Policy; Infrastructure Development; Digital Trade; Manufacturing Expansion; Foreign Trade Agreements; Economic Growth; Supply Chain Diversification; Sustainability; Global Value Chains (GVCs) Introduction Global supply chains are experiencing a massive shift, primarily driven by geopolitical tensions, changing perspectives on sustainability, and new technological advancements. These changes position India as a pivotal player in the global supply chain ecosystem. With its strategic advantages, India is well-equipped to stand out on the global manufacturing and logistics radar, fostering a more diversified and robust supply chain network. Key Factors Driving India's GrowthRobust Domestic Consumption: Strong domestic demand and government reforms have contributed to India's economic growth. 1. Manufacturing Expansion: Initiatives like the Production Linked Incentive (PLI) scheme have attracted investments in sectors like electronics, pharmaceuticals, and automotive components. 2. Infrastructure Development: Investments in ports, roads, and multimodal transport have improved supply chain efficiency. 3. Digital and Green Transition: Encouraging AI, automation, and sustainabilitydriven manufacturing aligns India with global ESG standards. 4. Government InitiativesPLI Scheme: Offers companies incentives on incremental sales from products manufactured in India 5. Gati Shakti and Bharatmala Projects: Aim to strengthen India's transport and logistics infrastructure. 6. National Logistics Policy (NLP): Reduces logistics costs and improves supply chain efficiency. 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: Dr. Sambhaji Manikrao Gate, Assistant Professor and Head, Department of Commerce, Shikshan Maharshi Guruvarya R. G. Shinde, Mahavidyalaya, Paranda Dist-Dharashiv (Osmanabad) M.S, INDIA. How to cite this article: Sambhaji Manikrao Gate (2025). India's Evolving Role in Global Supply Chains. Journal of Research & Development, 17(9), 19-22. 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 20 7. Free Trade Agreements (FTAs): India has signed FTAs with countries like the UAE, Australia, and EFTA nations to boost exports and manufacturing linkages ¹ ². Current Indian Trade Relating Data India's Trade Statistics 1. India's trade statistics show a mixed picture. Here are some key highlights ¹: 2. Total Exports: $820.93 billion (April-March FY 2024-25), up 5.50% from the previous year 3. Merchandise Exports: $437.42 billion, up 0.08% from FY 2023-24 4. Services Exports: $383.51 billion, up 12.45% from FY 2023-24 5. Total Imports: $915.19 billion (April-March FY 2024-25), up 6.85% from the previous year 6. Merchandise Imports: $720.24 billion, up 6.20% from FY 2023-24 7. Services Imports: $194.95 billion, up 9.32% from FY 2023-24 8. -Trade Balance: -$94.26 billion (April-March FY 2024-25), widening from -$78.39 billion in FY 2023-24 Top Export Destinations: 1. United States: $82.9 billion 2. United Arab Emirates: $31.6 billion 3. Netherlands: $17.6 billion 4. China: $15.3 billion 5. Bangladesh: $13.8 billion Top Import Sources: 1. China: $110 billion 2. United Arab Emirates: $51 billion 3. United States: $48.5 billion 4. Saudi Arabia: $46.2 billion 5. Russia: $40.4 billion Key Export Products: 1. Refined Petroleum: $86.2 billion 2. Diamonds: $25.9 billion 3. Packaged Medicaments: $19.5 billion 4. Jewellery: $12.6 billion 5. Rice: $11.1 billion Growth Areas: 1. Electronic Goods: up 32.47% to $38.58 billion 2. Coffee: up 40.37% to $1.81 billion 3. Tobacco: up 36.53% to $1.98 billion 4. Engineering Goods: up 6.74% to $116.67 billion India's Export Growth Potential India's export growth potential is vast, with projections indicating that exports could skyrocket from $770 billion to $1.7 trillion by 2028, driven by factors like: 1. Digital Trade: Growing demand for digital services and e-commerce exports 2. Manufacturing Expansion: Initiatives like the Production Linked Incentive (PLI) scheme to boost production and exports 3. Global Preference: Increasing demand for Indian products globally 4. Government Initiatives: Policies like the Foreign Trade Policy 2023-28 and trade agreements with countries like the UAE and Australia Key Sectors Driving Export Growth: 1. Electronics: Expected to generate incremental production of $153 billion and exports worth 2. $100 billion by 2025 3. Pharmaceuticals: Growing demand for Indian pharma products globally 4. Automotive: Expected to drive export growth up to $5 billion through electric vehicles and components 5. Textiles: Growing demand for Indian textiles globally 6. Agriculture: Rice exports valued at $11.14 billion in FY23, with potential for growth in other agricultural products Government Initiatives:  PLI Schemes: To promote large-scale manufacturing in key sectors  National Logistics Policy: To reduce logistics costs and enhance multimodal connectivity  Trade Agreements: With countries like the UAE and Australia to boost exports 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 21  Export Incentive Schemes: Like the Remission of Duties and Taxes on Export Products (RODTEP) scheme, extended until March 2026 Challenges and Opportunities:  Infrastructure Development: Improving transportation networks and ports to reduce logistics costs  Skill Development: Enhancing skills of workers to meet global demand  Sustainability: Focusing on sustainable practices to meet global standards. Finance Graph and Table Explanation India's GDP Growth Rate: India's GDP growth rate has been steadily increasing, with a growth rate of 8.15% in the fiscal year 2023-2024. India's GDP growth rate has been impressive, with the country expanding at a rate of 7.8% yearon-year during the April-June quarter of 2025, which is the fastest growth in five quarters. Here's a breakdown of the growth rate: Current Growth Rate: 7.8% (year-on-year) for the April-June quarter of 2025 Projected Growth Rate for 2025:  IMF Projection: 7.021%  OECD Projection: 6.7% Projected Growth Rate for 2026:  IMF Projection: 6.461%  OECD Projection: 6.2% Fiscal Year GDP Growth: 6.50% (as of March 2025), with expectations to grow at 6.8% for the fiscal year The Indian economy has demonstrated resilience despite global headwinds, driven by strong domestic demand and robust GST reforms. Factors contributing to this growth include.  Robust Domestic Consumption: Strong consumer spending  Manufacturing Expansion: Initiatives like the Production Linked Incentive (PLI) scheme  Infrastructure Development: Investments in ports, roads, and multimodal transport However, potential risks to growth include.  US Tariffs: Higher tariffs imposed by the US may impact India's exports  Global Economic Uncertainty: Trade tensions and policy uncertainty may affect investment and consumption India's Top Trading Partners: India's top trading partners are diverse and global, with the country's strategic location and large labor force contributing to its growing prominence in international trade. Here are India's top trading partners: Top 5 Export Partners:  United States: $80.8 billion (18.3% of India's total exports), with exports including gems, jewelry, textiles, and pharmaceuticals  United Arab Emirates: $37.8 billion (8.5% of India's total exports), with exports including petroleum products, textiles, and machinery  Netherlands: $24.6 billion (5.6% of India's total exports)  Singapore: $15.9 billion (3.6% of India's total exports), with exports including machinery, electronics, and pharmaceuticals  China: $15.1 billion (3.4% of India's total exports), with exports including iron ore, cotton, and textiles Top 5 Import Partners:  China: $101.75 billion (15.06% of India's total imports), with imports including electronics, machinery, and chemicals  Russia: $61.43 billion (9.10% of India's total imports), with imports including crude oil, diamonds, and fertilizers  United Arab Emirates: $48.02 billion (7.11% of India's total imports), with imports including crude oil and natural gas  United States: $40.77 billion (6.04% of India's total imports), with imports including electronics, machinery, and chemicals  Saudi Arabia: $31.81 billion (4.71% of India's total imports), with imports including crude oil and natural gas Top Trading Partners (Total Trade):  United States: $131.84 billion (2024-2025 data)  China: $118.4 billion (2023-24 data)  United Arab Emirates: $83.6 billion (2023-24 data) 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 22  Russia: $65.7 billion (2023-24 data)  Saudi Arabia: $43.4 billion (2023-24 data) India's trade pact with the EFTA bloc is expected to boost exports of textiles, leather, and food products while attracting investments.  Challenges and OpportunitiesInfrastructure Constraints: India needs to address logistics costs, bureaucratic hurdles, and labor skill gaps.  Supply Chain Diversification: Companies are diversifying their supply chains away from China, and India is emerging as a key alternative.  ustainability: India's roadmap for sustainability includes initiatives like achieving 500 GW of renewable energy capacity by 2030. Conclusion In conclusion, India's evolving role in global supply chains is driven by its strategic location, large labor force, and government initiatives. The country's economy has demonstrated remarkable resilience, and its supply chains are poised for strong growth. With its robust domestic consumption, manufacturing expansion, and infrastructure development, India is wellpositioned to become a pivotal player in global supply chains. By addressing its challenges and capitalizing on emerging opportunities, India can strengthen its position in international trade and serve as a model for robust and sustainable supply chains across continents. References 1. NITI Aayog. (2024). India and Global Value Chains (GVCs). 2. PWOnlyIAS. (2023). India's Supply Chain Opportunity. 3. OECD. (n.d.). Global Value and Supply Chains. 4. The Indian Express. (n.d.). India's diesel exports to Europe probably surged to record in September, sources say. 5. Business Standard. (2025). India's Infra. Market files for IPO under confidential route.