India’s Supply Chain Evolution: From Cost Efficiency to Strategic Influence 

India’s supply chain landscape is experiencing a significant transformation. Once  primarily seen as a backend function focused on efficiency and cost-cutting, supply  chains are now emerging as a strategic asset that shapes competitiveness, investment  choices, and even the country’s global standing. This evolution was underscored by  industry leaders during a keynote session on SCM Talents, which explored the shifting  role of supply chains in India’s economic narrative. 

During the session, Radha Mohan Gupta, the former Senior Vice President of Supply  Chain at Devyani International Limited, described this period as a pivotal moment for  India. With global supply networks being reconfigured in the wake of repeated  disruptions, supply chains have transitioned from being mere operational afterthoughts  to essential drivers of trust, resilience, and sustainable growth. 

“These days, supply chains are assessed based on more than simply price and speed. They play a crucial role in establishing credibility, reliability, and influencing where  global companies decide to invest,” Gupta remarked. 

Shifting Beyond Cost-Centric Strategies 

Gupta elaborated that while cost efficiency remains important, it can no longer be the  sole foundation of supply chain strategy. India’s previous approach relied heavily on  low-cost manufacturing and transactional efficiency—a model that proved effective but  lacked long-term viability.

“That strategy was successful but inherently fragile. Cost advantages can easily be  matched or outdone by other regions,” he pointed out. 

The current global reset is compelling organisations to reassess their supply chains with  a broader perspective. Factors such as reliability, resilience, transparency, and  scalability are now equally vital alongside cost considerations. This signifies a clear  transition from a cost-driven mindset to one that prioritises strategic advantages. 

Gupta noted that long-term predictability, the strength of the ecosystem, and  operational credibility are now taking precedence over short-term savings in the  decision-making processes of global businesses. 

Why India Is Positioned for Success 

Gupta highlighted several structural strengths that make this transition particularly  timely for India. The country’s vast and expanding domestic market, supportive policy  framework, and growing digital infrastructure are reshaping its image within global  supply chains. 

“India is no longer only thought of as a hub for low-cost industry. It is increasingly  recognised as a reliable and long-term supply chain partner,” he stated. 

He pointed out the rapid growth of India’s consumption economy, particularly in the e commerce sector, which is anticipated to see substantial growth by the end of the  decade. This internal demand adds both stability and scale, enhancing India’s  attractiveness to global manufacturers and investors. 

Policy and Infrastructure as Catalysts for Change 

Gupta also emphasised the critical role of policy alignment in bolstering India’s supply  chain competitiveness. Initiatives such as the National Logistics Policy introduced in  2022, the PM Gati Shakti programme, and targeted infrastructure investments are  addressing long-standing challenges. 

“In the past, India’s logistics expenses were much greater than those of other countries. Although production costs were low, inefficiencies in movement and coordination  undermined that advantage,” he explained. However, policy reforms are now bridging  this gap and enhancing overall efficiency. 

Supply Chains as a National Asset 

As global supply chains are being reimagined to withstand geopolitical tensions,  pandemics, and climate-related challenges, Gupta believes India has a unique  opportunity to fortify its role in global value chains.

“The flow of commodities is no longer the only aspect of supply chains. They influence  national credibility and global competitiveness. This is why we are witnessing India’s  supply chain moment,” he asserted. 

In closing the session, Gupta encouraged supply chain professionals to embrace the  expanding scope of their roles. With resilience, transparency, and digital enablement  becoming central to economic strategies, the talent within supply chains will play a  crucial role in shaping India’s long-term growth and its position on the global stage.