Recurring geopolitical disruptions in West Asia are prompting multinational companies to diversify their regional supply chains by shifting part of their inventories to India, reducing their dependence on a single distribution hub in the Gulf, according to DP World.
Speaking on Wednesday, Ranjit Ray, Chief Operating Officer – Logistics, Subcontinent, Central Asia, Levant and Egypt, DP World, said the recent conflict in West Asia has accelerated a structural shift in inventory management strategies, with global companies establishing satellite distribution hubs at DP World’s Free Trade Warehousing Zones (FTWZs) in India alongside Dubai’s Jebel Ali Free Zone.
The move follows temporary disruptions to trade flows during the recent regional conflict, which exposed the risks of concentrating inventories at a single location. Companies are now adopting a dual-hub model to ensure business continuity during geopolitical crises.
“Earlier, companies typically served Africa, the Middle East and Central Asia from a single regional hub in Dubai. Now they are splitting inventories across two locations so supplies can continue even if trade routes or ports are disrupted. The mother hub will remain, but customers now want a satellite hub as well,” Ray said, adding that customers have indicated the strategy is a permanent shift rather than a temporary response.
According to DP World, around 10 to 12 multinational customers have moved part of their inventories to its logistics facilities in Mumbai and Chennai over the past few months. These include six to seven global automotive spare parts suppliers, along with companies from the pharmaceutical, chemical, industrial and agriculture sectors.
The trend highlights India’s growing importance as a regional logistics and distribution hub, supported by expanding warehousing infrastructure, improved multimodal connectivity and strategic proximity to key international markets.
Industry observers believe the evolving supply chain strategy reflects a broader move by multinational corporations to build greater resilience into their operations, ensuring uninterrupted supplies across Africa, the Middle East and Central Asia while mitigating geopolitical and trade-related risks.
The development is expected to further strengthen India’s role in global supply chains, particularly as companies increasingly adopt diversified inventory networks to enhance operational flexibility and reduce supply chain vulnerabilities.