Supply Chain

Scale alone will not make India a global electronics hub. Cost discipline will.

India’s electronics manufacturing story is accelerating, but structural cost inefficiencies still hold the sector back. Addressing these challenges across the value chain is critical for India to compete with established global manufacturing centers.

The next phase of growth will be defined by execution, not ambition

India’s global journey is entering a new phase, where scale alone will not define success. With exports nearing USD800 billion and over 1,700 GCCs driving core business decisions, India is becoming more deeply integrated into global value chains.

As companies expand globally, the focus is shifting towards innovation, agility and higher standards of execution and compliance. Supply chains are becoming more strategic, and partnerships are emerging as key enablers of faster, more effective market entry.

The next generation of Indian multinationals will be built on strong execution, innovation-led differentiation and the ability to collaborate across markets. This is where India has the opportunity to move from being part of global value chains to shaping them.

India's exports nearing $800 billion grow 6% amid turbulence, with Asia central to leadership strategy; GCCs evolve from processing to strategic integration in overseas decision-making. Scale alone insufficient, robust supply chains, innovation partnerships, and sustainable long-term relationships drive effective global growth.

Snehasis Batabyal

Partner, C&O-Commercial-M&M
KPMG in India        

Rare Earth Elements and Permanent Magnet supply chains are central to electric mobility, renewable energy, and advanced technologies. To secure our future, there is an urgent need to scale domestic processing, build integrated industrial clusters and tighten industry–research collaboration. These actions are essential to reduce import dependencies and create strong, resilient supply chains that keep India ahead.

We are operating in a global landscape defined by persistent uncertainty - geopolitical realignments, climate pressures, technological disruption and shifting capital flows. Within this environment, nations that can adapt, execute, and inspire confidence will shape the future. India is actively re-shaping its opportunities within this uncertainty - not reacting to it but leveraging it. By expanding market access, deepening regional and minilateral partnerships, and building agile trade frameworks, India is scaling manufacturing, accelerating frontier technologies and strengthening global supply-chain integration.

India’s edge in the semiconductor race goes beyond incentives. The government is steadily building an ecosystem by investing in skilling, enabling infrastructure, and ensuring policy stability. Competitiveness will rest on ecosystem depth and the ability to deliver with speed and consistency. Early wins in packaging and design give confidence we are moving in the right direction.

The Indian automotive Industry has a massive opportunity in harnessing sustainability-led growth. The Indian automtive This can open new markets and increase export penetration in others. A low-carbon manufacturing push can drive huge growth and acceleration.

Geopolitical shifts are forcing CFOs to rethink supply chain architecture. From satellite facilities to optionality in logistics, the focus is shifting from scale to agility. CFOs must lead with long-term commitment, especially in volatile global environments. India’s strength won’t come from competing on cost; it will come from engineered products, process innovation and logistics. Risk management, scenario planning and treasury coordination are now central to financial leadership.