Strengthening India’s Supply Chain Resilience

India’s manufacturing ecosystem is deeply integrated into global supply chains; heavy reliance on imported energy and raw materials exposes the economy to significant risks. The ongoing conflict involving the United States, Israel, and Iran has further amplified these vulnerabilities through disruptions in energy markets and volatility in global trade routes.

Energy and Food Vulnerabilities

India, importing 85% of its crude oil and over 50% of its gas, remains highly sensitive to geopolitical shocks that impact inflation and GDP growth.

To counter this, India is pursuing a target of 500 GW of non-fossil capacity by 2030 while scaling domestic production of oilseeds and pulses.

Manufacturing Dependencies

India remains vulnerable due to its dependence on China for 65-70% of pharmaceutical intermediates and East Asia for semiconductors.

Strategies for Industrial Resilience

India’s industrial policy must incentivize domestic production of intermediates such as APIs and high-end machinery. This requires forming strategic global partnerships while adopting input-efficient production methods to lower structural vulnerability. The way ahead involves a transition to deep-tier domestic manufacturing and technological innovation.