India Inc has maintained a stable level of import dependence despite ongoing global supply chain uncertainties, according to a report by Bank of Baroda (BoB). The findings suggest that Indian businesses have successfully adapted to shifting trade dynamics through diversified sourcing strategies and stronger domestic capabilities.
The report noted that while geopolitical tensions, shipping disruptions and fluctuating commodity prices continue to pose risks to global trade, the overall reliance of Indian companies on imported inputs has remained broadly unchanged. Businesses have increasingly focused on expanding supplier networks, improving inventory management and strengthening local procurement to reduce vulnerability to external shocks.
Key sectors such as manufacturing, engineering, electronics and pharmaceuticals continue to rely on imported raw materials and components, but many firms have adopted risk mitigation measures to ensure uninterrupted production. Government initiatives aimed at boosting domestic manufacturing and promoting supply chain resilience have also contributed to greater stability.
BoB expects India’s import dependence to remain manageable in the near term, provided global trade flows continue to normalize and geopolitical tensions do not escalate significantly. The report adds that continued investment in local manufacturing, logistics infrastructure and supply chain diversification will be critical to enhancing India’s long-term economic resilience and reducing exposure to external disruptions.