Limit and manage disruption, mitigate risk, and build resilience and agility

To survive in a dynamic world, driven by ever-evolving industry trends and technological innovation, multinational corporations must find newer ways of conducting business for survival and growth. Further, geopolitical disruptions, rising protectionist policies, regulatory scrutiny, possible COVID-19-like disruptions, restrictions on foreign investments and increasing cybersecurity threats are directly impacting their supply chain strategies. From diversification to reshoring and regionalisation to risk mitigation, policies have been adapted and processes overhauled.

Now, more than ever, CXOs are making tactical and operational changes to navigate through this highly uncertain, fast-changing global environment and meet the needs of a vastly evolved business landscape. In this process, they are seeking expert advice to limit and manage disruption, mitigate risk, and build resilience and agility.

KPMG in India has been closely monitoring the shifting investment trends and supporting clients in their supply chain diversification strategies. Through focused efforts, we are helping clients identify key risk areas that complicate strategic transformation, aiming for business continuity and resilience. Our efforts are channelised to help clients get forward-looking perspectives on areas related to:

Identifying new supply bases in alternative jurisdictions
Shortlisting the right set of partners for sourcing/manufacturing
Navigating complex tax and regulatory procedures across jurisdictions

Devising risk mitigation strategies to reduce transition-related disruptions
Building a supplier development roadmap for operating in a new jurisdiction
Advising on investment in technology and processes to become future ready

Global production networks are complex, sophisticated, interdependent and deeply entrenched, making reconfiguration a challenging task. In an era of global volatility, supply chains are navigating uncharted waters. Businesses continuously need to assess risk exposure, supply alternatives, tax considerations and channel complexities. Further, issues such as governance and regulatory adherence, the use of digital technology and analytics, implementation priorities and roadmaps need a detailed study and domain knowledge. We are here to help as your advisor. At KPMG in India, we use our significant subject matter expertise and multidisciplinary advisory services to demystify the complex implications of a decision to rebalance supply chains.

Neeraj Bansal

Partner and Head India Global

National Leader–Supply Chain Realignment, KPMG in India

India advantage

India, much like other emerging economies, is exploring ways to build its investment attractiveness and make it a viable contender for global manufacturing/sourcing. The government’s investment-driven policy measures along with corporate tax cuts, investment in infrastructure under the National Infrastructure Pipeline (NIP) and business-friendly changes to labour laws are likely to further underpin India’s attractiveness as a global manufacturing hub.

Notable government reforms*

Atmanirbhar Bharat Abhiyan scheme launched at an estimated USD265 billion
The Product Linked Incentive (PLI) scheme announced with an outlay of USD27 billion for 14 sectors
A USD1.4 trillion National Infrastructure Pipeline (NIP) set up for infrastructure development
Export Promotion Capital Goods (EPCG) scheme launched for duty-free import of capital goods

Supply Chain Resilience Initiative (SCRI) launched, along with Japan and Australia, to build resilient supply chains in the Indo-Pacific region
The PM Gati Shakti National Master Plan launched, which is powered by clean energy and driven by seven engines, namely roads, railways, airports, ports, mass transport, waterways and logistics infrastructure
National Logistics Policy (NLP) announced to enhance business competitiveness and fuel overall economic growth by developing an integrated, efficient and cost-effective logistics infrastructure

What makes India a favourable manufacturing destination?

63rd in world bank’s EODB ranking 2019 (Jumped 79 places from 142 in 2014)

Substantial improvement in:

Resolving insolvency (52^nd from 108^th)
Dealing with construction permits (27^th from 52^nd)

100% FDI allowed in 30+ sectors

FY24 recorded an FDI inflow in USD 70.9 bn

15% one of the lowest corporate tax rate for new manufacturing companies in Asia

USD 27 bn PLI pharmaceuticals, electronics, white goods, batteries, solar cells, etc.
Custom duty deferral for manufacturers and improvement in trade facilitation

Government of India’s strategic priorities

Make India a manufacturing hub for exports

Bring down cost of logistics and boost supply chain across the country

Push growth via infrastructure development

44 mn strong workforce in manufacturing

One of the lowest average labor costs in Asia

USD 2 per hour

125 fortune 500 companies have set up R&D bases in India

2^nd most attractive manufacturing hub globally

India has 14 Free Trade Agreements (FTAs)

Double Taxation Avoidance Agreements (DTAAs) with 89 countries

Sectors of strategic importance in India

emoji_transportation

Automobile

science

Chemicals

drag_indicator

Pharmaceuticals

local_phone

Telecom

Sectors of emerging importance in India

cable

Electronics

api

Semi conductor

add_business

Textile

backpack

White goods

fastfood

Food Processing

medical_services

Medical devices

toys

Toys

energy_savings_leaf

Renewable energy

KPMG In India’s Supply Chain offerings

We understand the complexities of today’s volatile and high-risk business environment. Our team of experienced professionals work across geographies and sectors to support organisations with comprehensive offerings and a value-driven approach specifically revolving around the following areas:

store

Marketing Landscaping

Assessment of market opportunity

business

Strategy building

Business planning
Developing supplier ecosystem
Mergers and acquisitions, joint ventures, PE, etc. opportunity identification
Devising sales channel strategy

insights

Location assessment

Factory and office location identification

dynamic_feed

Regulatory and incentive assessment

Central and state incentives
Conceptualising and easing regulatory compliance

account_tree

Investment analysis

Tax and regulatory registrations for new entities
Tax efficient holding jurisdiction analysis
Post-deal services

receipt_long

Implementation strategy

Smart manufacturing framework
Cost optimisation/revenue enhancement
Logistics and warehousing operating model
Tax compliance, trade and regulatory advisory

Webinars

Arun Kumar in conversation with Ambassador Craig Allen, President USCBC and, Professor C Raja Mohan

KPMG Germany – India Webinar

U.S. International Corridors

Success stories and experiences of our valued clients

Valuable insights into our strong strategies and impactful outcomes

Discover narratives that highlight the challenges our clients faced, the services we provided, and the results they achieved. These case studies offer a detailed look into our collaborative process, demonstrating our commitment to understanding each client's unique needs and delivering customised services that drive success.

Explore our case studies

Driving growth with Supply Chain trends

The CFO Board’s Risk Roundtable

Manoj Kumar Vijai

Office Managing Partner - Mumbai, Head - Risk Advisory

KPMG in India

mail

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.

Hear from the experts

S Sathish shares his views on intelligent manufacturing and how AI is a critical enabler for resilience, precision, and growth.

Watch on ETManufacturing

Sushant Rabra shares his views on advanced AI and analytics models on supply chain.

Watch now

Defence exports have grown phenomenally over the last few years. We are becoming part of the global supply chain and are on our path to achieving our goal with regards to defence exports.

Watch on ET NOW

In conversation with Navin Bishnoi, Head of Marvell Semiconductor India, uncovering deep insights on India's leap from engineering services to semiconductor manufacturing, and the evolution of semiconductor GCCs into global innovation engines.

Watch now

India insights

Our insights is your gateway to thought leadership and in-depth reports. Explore our curated collection of valuable content, where we delve into complex business challenges, share industry trends, and provide actionable insights.

Media

APREA Market Flash - 2025 Asia Pacific Market Outlook

How agritech is revolutionising supply chains and retail in agriculture

Global insights

This measure has always been important, but with so many forces now affecting the supply chain, it’s time to get granular.

Pressures on the supply chain are now boiling over, presenting complex and interdependent business risks. Leaders should be seeking to renew their resilience strategy and put supply chain risk management at the top of their agenda.

Know how to calibrate the right blend of strategic decision-making and automated support processes

Boosting agility and resilience with Generative AI, IoT, and Quantum Computing for business growth.

Integrating ESG into supply chain operations

From ESG to robots and the metaverse, supply chain leaders have new challenges to prepare for.

Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work.

Supply Chain Realignment

Our Supply Chain Realignment solution is a specialised value-driven offering to help clients build greater resilience into their global supply chains

An Indian logistics professional using a digital map to track deliveries, set in a modern office environment.

Sources:

* Invest India, accessed on 5 April 2024
1. Invest India and Make in India, accessed on 5 April 2024
2. Report on Production Linked Incentive Scheme for Large Scale Mobile and Component Manufacturing by Ministry of Electronics & Information Technology, Government of India, September 2021, accessed on 5 April 2024
3. Press Information Bureau, Ministry of Textiles, accessed on 5 April 2024
4. Invest India report Inside India Production Linked Incentives Schemes: White Goods
5. Production Linked Incentive Scheme for Food Processing Industry, accessed on 5 April 2024
6. Nine PLI schemes have been approved by the cabinet so far, Ministry of Commerce & Industry, accessed on 5 April 2024

Note to readers: We have relied on secondary sources, which are considered reliable, but have not independently verified the data. KPMG shall not be liable and/or responsible for any reliance placed on the content of the website.