According to Deloitte India, deepening integration into global value chains (GVCs), strengthening supply chain resilience and enhancing utilisation of free trade agreements (FTAs) are key to boosting the country's exports and high-end manufacturing. Anil Talreja, Partner at Deloitte India, emphasized that India's next phase of export-led manufacturing must move beyond scale and assembly towards technology, value addition and deeper integration into GVCs. The focus should be on high-potential sectors such as electronics and semiconductors, pharmaceuticals, capital goods, defence and aerospace, speciality chemicals and clean technologies. The recent FTAs finalised by India can be leveraged as an important enabler, providing access to competitively priced intermediate inputs, technology, investment and large export markets, while creating opportunities for Indian firms to integrate into supply chains of the partner.
As reported by Deloitte India, India needs to work on further reducing logistics costs through multimodal export corridors by focusing not only on infrastructure creation but also on end-to-end supply chain efficiency. The priority should be given to lowering costs associated with port handling, transportation, warehousing, rail connectivity, container availability, and last-mile logistics. Talreja suggested setting up a 'Response Cell' to monitor and analyse changes in standards, carbon-border adjustment measures (CBAM), product regulations, sustainability and traceability requirements, sanctions, and other emerging trade-related requirements in major export markets. The report also called for rationalising tariff structures by revisiting inverted duty structures that increase input costs and reduce export competitiveness.
According to Deloitte India, MSMEs account for about 48.58 per cent of India's total exports and 45 per cent of the country's manufacturing. The report suggests that the government should support the segment in complying with rules of origin, standards and documentation requirements to make better use of preferential tariffs under free trade agreements. Talreja highlighted that MSMEs often face challenges in securing pre- and post-shipment credit due to limited collateral, credit history, and export track record, resulting in higher financing costs. High exposure to payment and currency risks from long export payment cycles and fluctuating exchange rates can adversely affect cash flows, pricing competitiveness, and profitability. The report also suggests addressing certain challenges being faced by MSMEs, such as access to affordable trade finance.
As reported by Deloitte India, the country should assess vulnerabilities in critical supply chains, including dependence on key inputs, supplier concentration and geopolitical risks, and reduce them through alternative suppliers, technology partnerships, domestic production and strategic reserves. The report also called for aligning free trade agreements with the country's industrial strategy to attract investment, develop manufacturing ecosystems and widen export opportunities. The recent FTAs finalised by India can be leveraged as an important enabler, providing access to competitively priced intermediate inputs, technology, investment and large export markets, while creating opportunities for Indian firms to integrate into supply chains of the partner.
According to Deloitte's Future of Infrastructure Survey 2026, India's infrastructure development is facing new constraints where attracting private capital is becoming as much about making projects investable and execution-ready as it is about mobilising money. Among Indian respondents, 42% cited complex policies, regulations and permissions as barriers to infrastructure delivery, while 38% pointed to a lack of private sector participation and another 38% to budgetary constraints. The survey reveals that 71% expect greater use of vendor and supplier financing, 62% anticipate more multilateral and development-bank funding, and 58% expect increased participation from sovereign wealth and pension funds. 91% of Indian respondents expect advanced technologies including generative artificial intelligence (GenAI), digital twins and predictive analytics to significantly affect infrastructure and transportation operations, compared with 57% across APAC. Organisations are already preparing with 79% developing AI training programmes, 62% building AI vision and implementation roadmaps, and 54% improving data quality for AI adoption.
