‘World of corner solutions is increasingly becoming less efficient,’ says Shaktikanta Das

Addressing a Confederation of Indian Industry (CII) event here, Das said that the old model of optimising efficiency through “just-in-time” supply chains and concentrated production networks was increasingly proving inadequate in a fragmented global order marked by conflicts, trade disruptions and volatile markets.

“The world of corner solutions is increasingly becoming less efficient,” he said, explaining that overreliance on a single source of production or supply can no longer guarantee the cheapest, safest or most predictable outcomes for businesses.

The remarks come at a time when global supply chains continue to face disruptions due to geopolitical tensions, shifting trade alignments and economic fragmentation. Referring to the West Asia conflict, Das said that what was once considered the most efficient and cost-effective supply chain arrangement is now vulnerable to sudden shocks.

In this changing environment, “resilience maximisation” is replacing “cost minimisation” as the key priority for corporates, he said, urging businesses to shift their operational strategies from concentration to diversification and from short-term efficiency to long-term resilience.

To navigate the evolving global landscape, he outlined a seven-point strategy for Indian industry. The first priority, he said, should be building organisational resilience by strengthening risk management systems, improving decision-making agility and proactively anticipating market and technological disruptions. Such measures would help firms absorb shocks and convert uncertainty into opportunity.

Second, companies should prioritise financial strength through prudent leverage, robust liquidity buffers and forward-looking capital allocation to withstand periods of global stress.

Third, firms were advised to diversify supply chains, localise critical inputs where feasible and integrate into multiple global value chains to reduce exposure to external disruptions and emerge as reliable global partners.

Reskilling the workforce

The fourth strategy focused on reskilling the workforce as automation, artificial intelligence and digital manufacturing reshape industries. Continuous upskilling and stronger industry-academia collaboration, Das said, would be essential for maintaining competitiveness.

Businesses were also urged to explore new export markets to reduce dependence on limited geographies and leverage India’s expanding diplomatic and economic footprint.

Das further called for strategic investments in technology, innovation, sustainability and capacity building, saying periods of disruption often create opportunities for future leadership.

Finally, corporates were asked to significantly increase expenditure on research and development, which Das described as a “strategic investment” rather than a cost center.

Calling for bold and transformative action, he said Indian businesses must move beyond incremental progress to create global champions, resilient supply chains and innovative business models aligned with India’s long-term vision for 2047.