StanChart: India Dominates Supply Chain Reconfiguration
Seismic transformations in trade have been causing businesses to rethink their supply chains. Globally, India is set to play a significantly larger role, according to a report by Standard Chartered.
India was named as the top destination for net intention to increase or maintain activities in sourcing (47 percent), manufacturing (41 percent) and export (48 percent), according to a report by Standard Chartered entitled «Future of Trade: Resilience». Other top markets include Malaysia, mainland China, Indonesia, UAE and the US.
Rising expenses are a driver of strategic adaptation with more than six in 10 corporates estimating costs to increase by 5 percent to 14 percent. In response, over half are planning a multi-pronged approach of realigning supply chains geographically, adjusting treasury management strategies and increasing digitalization efforts.
Tech and the Economy
While tariffs are at the top of mind, emerging technologies and global economic growth were also cited by 53 percent of corporates as the top strategic drivers shaping the future of global trade.
«We are seeing strong demand from clients to evolve their global trade and supply chain ecosystems and accelerate the adoption of smart manufacturing and AI to drive efficiencies and offset rising costs,» said Sunil Kaushal, global co-head, corporate & investment banking and CEO, ASEAN and South Asia, Standard Chartered.
«Although trade fragmentation is likely to hinder global growth in the short term, rising prosperity in developing economies and emerging technology means that the picture, while complex, is still compelling.»
The report was based on findings from 1,200 C-suite and senior leaders at global corporates who were surveyed on their outlook for global trade and their corporate strategies over the next three to five years.
