Page 10 - ITLN March-April 2025

Cover Story
Global Supply Chains

enhanced efforts to reroute cargo
through alternative markets like the
Middle East, Indian Subcontinent, and
Southeast Asia," he said.
A key development in this shift
is the India-Middle East-Europe
Economic Corridor (IMEC), a strategic
initiative aimed at reducing reliance
on conventional maritime routes. Jha
of Kuehne+Nagel sees this corridor
as a crucial alternative for exporters.
"IMEC integrates rail and sea networks,
offering a more resilient alternative
to traditional shipping lanes. Once
operational, it could reduce transit Average shipping times
times by up to 40%," he said. have increased by 30-45
Menon of Blue Ocean explains how days, resulting in 20-30%
companies are leveraging regional higher inventory costs for Agarwal of CJ Darcl Logistics
ports to improve trade efficiency. exporters. Additionally, highlights the role of India's logistics
"Textile exporters in Tiruppur aren’t rising US tariffs have policies in trade competitiveness.
just staring at Europe anymore; they’re "The government has laid a strong
hustling to Nigeria and Kenya, where led to a 15-20% decline framework of policies to build a
sales shot up 22%. Pharma giants in demand for certain robust logistics infrastructure, reduce
are courting Brazil and Mexico, with Indian products in the logistics costs, and improve the
exports up 17%," he said. US market. nation’s Logistics Performance Index
While these adjustments provide ranking. While these policies aim to
much-needed flexibility, they also Shailesh Sapale enhance India’s export competitiveness,
Trezix
introduce new logistical complexities. balancing trade protectionism with ease
Infrastructure development, regulatory of doing business remains key," he said.
alignment, and cost considerations will Industrial Goods & Services at 1Lattice, This delicate balance between
determine the long-term effectiveness highlights how these agreements fostering self-reliance and maintaining
of these alternative trade routes. Indian are helping businesses diversify their global competitiveness remains
exporters must carefully evaluate these trade relationships. "India’s new trade a critical challenge for Indian
emerging opportunities, ensuring that agreements, particularly with ASEAN policymakers. While government
new pathways not only mitigate current and the UAE, have diversified its trading incentives and trade reforms
challenges but also enhance overall partnerships, reducing dependency on are helping businesses navigate
supply chain resilience. any single market." global uncertainties, ensuring that
1Lattice is a technology-enabled protectionist measures do not hinder
Two sides of govt policies decision support organisation utilising growth will be key to building a truly
The Indian government has taken AI/ML to provide actionable insights resilient supply chain.
significant steps to strengthen supply for businesses.
chain resilience, introducing policies While such agreements open Tech-defined future
aimed at expanding trade opportunities, new market opportunities, domestic As global supply chains grow
boosting domestic manufacturing, and policies aimed at protecting Indian increasingly complex, Indian businesses
enhancing logistics infrastructure. manufacturers can sometimes have are turning to technology to enhance
However, while these initiatives provide the opposite effect. High import operational efficiency, improve visibility,
much-needed support to businesses, duties, designed to encourage local and mitigate risks. With volatile freight
they sometimes create unintended production, have increased costs rates, shifting trade policies, and
hurdles, particularly for small and for businesses that depend on unpredictable disruptions, the ability to
medium enterprises (SMEs) reliant on imported inputs. Menon warns of the make data-driven decisions in real-time
imported raw materials. challenges this creates. "High import has become a necessity rather
One of the most impactful policy duties aimed at shielding domestic than a luxury.
moves has been India’s expansion manufacturers sometimes backfire, Amit Maheshwari, Founder &
of trade agreements with key global making raw materials more expensive CEO, Softlink Global, emphasises
partners. Abhishek Maiti, Director - for SMEs." how digital freight management is
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