By Neeraj Bansal, Partner and Head, India Global, KPMG in India

In today's volatile geopolitical environment, the fragility and interconnectedness of our supply chains have never been more apparent. Renewed conflicts in the Middle East have reignited fears of supply chain instability, adding fresh uncertainties to already strained global networks.

Since the start of the conflict, crude oil prices have fluctuated sharply, with brent crude surging past USD80 per barrel. The impact extends beyond oil prices, affecting shipping rates, freight costs, and airspace closures, leading to increased transit times and operational costs across sectors.

How can India navigate evolving disruptions?

For economies like India, deeply connected to West Asian trade and energy flows, the stakes are even higher. The West Asia corridor is crucial for India’s trade, and any escalation in tensions brings risks for Indian traders and manufacturers.

India’s resilience will depend on its ability to adapt by strengthening risk monitoring systems and diversifying its trade and energy strategies. Fast-tracking the development of alternative corridors and upgrading port infrastructure can help build resilient trade linkages.

The way forward: How can businesses navigate unforeseen disruptions?

Building a resilient supply chain ecosystem is critical. Strategic scenario planning, diversification of logistics routes, and robust contingency plans are essential steps businesses can take to navigate uncertainties.

Digitisation can significantly improve the visibility and resilience of supply chain processes, helping companies better evaluate safety stocks and alternate sourcing strategies.

In these unpredictable times, planning in advance and staying prepared for all possible future scenarios will be key for long-term resilience.