The Indian firms to investment is expected to increase to at least $2.3 billion or nearly 3.5x in 2026.

The Indian firms to investment is expected to increase to at least $2.3 billion or nearly 3.5x in 2026.

Companies in India are taking decisive actions to enhance their resilience against disruptions in the supply chain and production processes. According to research conducted by Accenture, Indian companies are increasing their investments by nearly 3.5 times over the next three years to digitize, automate, and relocate their supply and production facilities.

To minimize vulnerability to disruptions, 63% of companies in India plan to purchase most key items from regional suppliers by 2026, compared to 34% currently. Furthermore, 77% of organizations aim to produce and sell the majority of their products within the same region by 2026, up from 29% at present.

The research underscores the importance of proximity-based hubs that concentrate production facilities and sales within the same region. By doing so, companies can enhance logistics efficiency, improve inventory management, and respond more rapidly to market demands. Investing in digital technologies, data analytics, and artificial intelligence (AI) is crucial for building resilient supply chains and enabling autonomous production.

The need for digital maturity is evident, as only 13% of Indian companies currently possess near real-time alerting mechanisms for supply chain and production disruptions. Digitizing engineering, supply, production, and operations processes is essential for better visibility, control, and overall operational excellence. By leveraging digital tools and AI solutions, companies can simultaneously improve sustainability, customer experience, and cost optimization.

Investments in digitizing, automating, and relocating supply and production facilities are expected to rise significantly. On average, companies in India will invest $70 million in 2023, and this figure is projected to reach at least $2.3 billion by 2026.

Disruptions have become increasingly common in recent years, impacting businesses worldwide and resulting in missed revenue opportunities. However, the most resilient companies managed to achieve 3.6% higher annual revenues compared to their vulnerable counterparts.

To bolster their resilience, companies should focus on three key areas, as recommended by the report :

1. Visibility : Enhancing supply chain and production process predictability through the implementation of smart control towers that monitor processes in real time and can detect and correct issues early on.

2. Resiliency in design : Shifting activities earlier in the development process to ensure products, processes, and ways of working are optimized from the start. Digital twins, which are digital replicas of physical production facilities, can help identify and troubleshoot issues before production begins.


3. New ways of working : Upskilling the workforce in data analytics, AI, and other digital technologies to enable data-driven decision-making at the operational level. By 2026, 67% of companies in India plan to have a multi-skilled, digitally literate workforce.

Investing in resilience is now essential for companies to remain competitive in today’s fast-paced and constantly evolving business landscape. Embracing digital technologies and leveraging data-driven insights are key to unlocking new value and adapting swiftly to unforeseen changes.

Indian companies recognize the urgency, with an increasing focus on building resilient operations that can withstand disruptions and drive long-term growth.

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