With quickly evolving capabilities across generative AI, data analytics, automation, machine learning, Internet of Things (IoT), blockchain and more, the ‘smart’ supply chain is well on its way to becoming the new normal. KPMG in India has been closely monitoring the shifting investment trends and supporting clients in their supply chain diversification strategies. Through focused efforts, we are helping clients identify key risk areas that complicate strategic transformation, aiming for business continuity and resilience.
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Driving growth with Supply Chain trends
- Union Budget 2026-27
- India’s Strategic Edge
- India’s Manufacturing Transformation
- The Economic Times Global Manufacturing Conclave
- CII CFO Roundtable
- India's semiconductor ambitions are gathering pace
- Decoding taxation and ESG
- The CFO Board’s Risk Roundtable
- S Sathish
- Neeraj Bansal
- Manoj Kumar Vijai
- Purushothaman KG
- Mohit Bhasin
- Naveen Aggarwal
The Budget clearly underscores its commitment to sustaining India's manufacturing momentum while fortifying the supporting ecosystem and infrastructure. These initiatives will substantially elevate India’s standing as a strong manufacturing nation globally.
Budget 2026 boosts India’s growth framework with a INR12.2 lakh crore capex outlay (+9%), strengthening infrastructure across transport, energy and digital systems while supporting innovation‑led manufacturing.
Backed by a INR10,000‑crore MSME Growth Fund and targeted export measures, these investments aim to lift productivity and attract private capital. Fiscal stability is maintained, with the FY26 deficit revised to 4.4% and the FY27 estimate at 4.3%.
Budget 2026 is ambitious and timely. As India accelerates infrastructure, manufacturing, and AI-led growth, the real differentiator will be how well governance, risk management, and accountability are embedded into execution - not treated as afterthoughts.
The Budget 2026-27 sends a decisive signal to global investors. By providing a long‑term tax holiday for foreign cloud service providers using Indian data centres, expanding the India Semiconductor Mission into a more integrated ISM 2.0, and deepening incentives for electronics and component manufacturing, India has placed digital infrastructure at the heart of its investment agenda.
These measures sharply reduce the cost of operating at scale, derisk long‑term capital commitments and strengthen India’s position in global technology supply chains. Together, they are likely to catalyse a new wave of high‑quality FDI into data infrastructure, semiconductor design and manufacturing ecosystems, and cloud‑led digital services -positioning India as a preferred hub for future‑ready global investments.
The forward-looking measures signal robust momentum for India's economy. Here are few key takeaways from my perspective that shall fuel economic growth:
- A budget to further boost manufacturing led economic growth with special emphasis on sports goods, white goods and electronic components manufacturing scheme shall position India as a global hub for strategic sectors.
- The Startup India Fund of Funds 2.0 will supercharge innovation and resilience, enabling scale-up in high-potential ventures especially in deep-tech innovation.
We are operating in a global landscape defined by persistent uncertainty - geopolitical realignments, climate pressures, technological disruption and shifting capital flows. Within this environment, nations that can adapt, execute, and inspire confidence will shape the future. India is actively re-shaping its opportunities within this uncertainty - not reacting to it but leveraging it. By expanding market access, deepening regional and minilateral partnerships, and building agile trade frameworks, India is scaling manufacturing, accelerating frontier technologies and strengthening global supply-chain integration.
India has made real progress in raising manufacturing as a share of GDP, but our next leap depends on:
- building strength in component manufacturing,
- connecting last mile infrastructure, and
- easing financing pressures on exporters.
This is the moment for India to rethink what it will take to become a true global manufacturing hub and act with clarity and speed.
- S Sathish
- Jeffry Jacob
- Nikhil Patil
India has made significant progress in reshaping its manufacturing landscape over the past decade, but deeper technological and ecosystem transformation is needed to compete with global leaders. While the top quartile of Indian manufacturers shows reasonable capability, a significant portion of companies are far below the desired digital maturity. Without widespread adoption of Industry 4.0, automation and AI-enabled systems, India risks losing competitiveness to countries that scaled digitalisation much earlier.
Jeffry Jacob
Partner and National Sector Leader - Automotive, Industry Group Leader - Chemicals
KPMG in India
Reimagining global manufacturing & supply chains in a disrupted world - Resilience, agility & strategic autonomy
Resilient supply chains aren’t built on infrastructure or technology alone, they are built on collaboration, smart capital choices and adaptable talent. As India strengthens its position in global manufacturing, innovation, advanced digital tools, and artificial intelligence will drive the next wave of transformation. The next disruption may look different, but the ability to pivot quickly and collaborate effectively will remain the winning mantra.
Nikhil Patil
Partner, C&O-Commercial-CM&LS
KPMG in India
The India advantage in scale, cost, and capability for the world
India has always had the ingenuity and talent; what has changed is the alignment of global demand, domestic modernisation and a greater appetite for investment in capability. However, India cannot claim global competitiveness unless its tier-2 and tier-3 suppliers rise on quality, compliance, and technology.
- Sumit Kapoor
- Ummehaani
Businesses today face rapid, unpredictable changes: new products, regulatory shifts, talent competition, ESG, and tech transformation. The pace of “unknown unknowns” or “Black Swan events” is accelerating at an unprecedented pace. Naturally, traditional risk models find it difficult to keep up with that pace as they assume stability and predictability in businesses and operating landscape. AI is emerging as a new risk nervous system helping with fraud detection, cyber defence, supply chain resilience and more. Future operating model of risk management must consider the four-dimensional lens of probability, severity, interconnectedness, and velocity; which helps with real-time intelligence and simulation of multiple futures.
At KPMG we continue to assist our clients stay ahead of the curve through our AI led risk management capabilities – converting noise to signals and doubts to trust.
Third-Party Risk Management (TPRM) has traditionally been fragmented and siloed across departments, sometimes reduced to check-in-the-box compliance. As supply chains are more interconnected and interdependent today, by integrating ESG, regulatory, reputational, cyber and financial risk parameters into a unified framework, organisations can move from reactive to predictive risk management. However, challenges remain: data quality and availability, integration with legacy systems, regulatory compliance and explainability, and change management. Overcoming these hurdles with Artificial Intelligence makes it possible to connect the dots across all risk types, so companies can stop playing catch-up and start leading with confidence, trust, and adaptability.
India’s edge in the semiconductor race goes beyond incentives. The government is steadily building an ecosystem by investing in skilling, enabling infrastructure, and ensuring policy stability. Competitiveness will rest on ecosystem depth and the ability to deliver with speed and consistency. Early wins in packaging and design give confidence we are moving in the right direction.
The Indian automotive Industry has a massive opportunity in harnessing sustainability-led growth. The Indian automtive This can open new markets and increase export penetration in others. A low-carbon manufacturing push can drive huge growth and acceleration.
Geopolitical shifts are forcing CFOs to rethink supply chain architecture. From satellite facilities to optionality in logistics, the focus is shifting from scale to agility. CFOs must lead with long-term commitment, especially in volatile global environments. India’s strength won’t come from competing on cost; it will come from engineered products, process innovation and logistics. Risk management, scenario planning and treasury coordination are now central to financial leadership.
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