Strengthening Supply Chains: India Looks to Build Long-Term Resilience
Janani G 4 days ago National News
India is facing growing pressure to strengthen its supply chains as global disruptions highlight the risks of heavy import dependence.
The country’s manufacturing sector is closely linked to global supply networks, with key industries such as energy, fertilizers, electronics, and chemicals relying on imported raw materials. Recent geopolitical tensions in West Asia have exposed how quickly supply disruptions can affect the economy, showing the need for a more resilient system.
Energy remains a major concern. India imports around 85% of its crude oil and more than 50% of its natural gas, making it vulnerable to global shocks. Rising oil prices increase production and transport costs, which can also lead to higher consumer prices.
Estimates suggest that a $10 increase in crude oil prices can raise India’s import bill by $13–14 billion, push inflation higher, and slightly reduce GDP growth.
Experts stress that long-term energy security must focus on diversification of sources, boosting domestic production, and adopting new technologies.
The situation highlights the importance of a coordinated and forward-looking approach to ensure stable and secure supply chains for the future.
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