India’s Supply Chain Test

CORE CONVERSATION

DHL CEO RS Subramanian On Supply Chain Resilience, Policy Gaps, And India’s Manufacturing Push

India’s supply chains have never been more globally relevant — or more vulnerable. Between erratic weather, clogged city roads, regulatory complexity, and tariff shocks, the pressure to keep goods moving has grown intense. In a wide-ranging interview with The Core, RS Subramanian, senior vice president of DHL Express South Asia, spoke about how the company is adapting its India operations to stay agile in uncertain times.

“We have a backup available and that backup works almost always and is made to work because you have a network which is talking to it and there is enough technology,” he said, describing how DHL preps for disruptions — from floods to airspace closures. Its India network, spread across four logistics businesses, is designed to respond quickly to breakdowns, with redundancy baked in.

But beyond operational agility, Subramanian flagged deeper structural issues. Logistics costs remain high, hovering around 14% of GDP. While the GST rollout has helped unify the market, progress has been uneven. “There is a lot of focus on passengers but there should be a focus on trade infrastructure which is the cargo movement,” he said. Expansion at cargo terminals and customs processing capacity at ports and airports remains a work in progress.

Subramanian was also candid about the evolving nature of India’s role in global supply chains. He sees a shift—not a full relocation—of manufacturing into India, especially in electronics, automotive, and engineering. “It’s more a case of diversification and capacity expansion... rather than all eggs in the same basket,” he said, noting that post-Covid resilience planning is now a critical business priority.

The complexity of these new supply chains demands faster, more precise logistics, particularly for industries like semiconductors and batteries. Subramanian pointed out that companies are now building multi-layered sourcing strategies and backup shipping routes to reduce risk exposure. DHL, in turn, has had to expand its offerings from last-mile delivery to full supply chain design, warehousing, and in-plant logistics.

Subramanian remains cautiously optimistic. Global trade may slow, but it isn’t shrinking, he said. And India, by virtue of its size and growing demand, remains a key geography. Yet he flagged the need for simplification—particularly around tax deducted at source (TDS), customs paperwork, and import clearances—to improve the ease of doing business and reduce transaction costs. “Computerising a manual process is not digitalisation,” he pointed out.

The big test for India, in his view, is whether infrastructure and regulation can catch up to ambition. For now, DHL is betting that it can.

Rs 3,973 crore

That’s the total net outflow by FPIs from Indian equities in March, as per PTI — a sharp improvement from February’s Rs 34,574 crore pullout. The turnaround was driven by a Rs 31,000 crore infusion in just the last six trading sessions, backed by attractive valuations, a strengthening rupee, and better macro data, the report said. Apart from this market regulator, the Securities and Exchange Board of India’s easing of FPI ownership disclosure thresholds also helped the sentiment. While this late burst has lifted markets, FPIs have still pulled out nearly $15 billion over the past year, the highest 12-month outflow on record.

—🍘 Haldiram’s $10 Billion Bite. Indian multinational snacks and sweets company Haldiram’s is selling a 10% stake to Singapore’s Temasek in a deal that pegs the iconic Indian snackmaker’s valuation at $10 billion. The funds will reportedly go towards domestic and international expansion, with promoters unlikely to pocket proceeds. Investment banking company PwC India advised on the deal, calling it India’s largest private equity consumer transaction. Haldiram’s is also in talks to sell another 5–6% stake for $500 million. Both deals are expected to close fully only after receiving the required regulatory approvals. 

—🎯 IT’s Latest Target! The Income Tax (IT) Department issued a notice to Indigo Airlines to pay Rs 944.20 crore as a penalty for the assessment year 2021-22, according to a report by Business Standard. Indigo’s parent company, InterGlobe Aviation Limited, contested the notice, calling it “erroneous and frivolous.” Earlier this year, the IT department also sent notices to Volkswagen and Samsung, accusing them of misclassifying imports to evade taxes. In response, Volkswagen filed a lawsuit against the Indian government, saying its demand contradicted India’s import laws; Samsung said it's exploring its legal options right now.  

— 🇺🇸❌ Self-deport or Bust! Hundreds of international students in the US, including several Indians, have been told to leave the country after the State Department reportedly revoked their student F-1 visas over participation in campus activism and protests. According to emails sent to affected students, their SEVIS (Student and Exchange Visitor Information System) records have been terminated with immediate effect, offering no grace period. Those who fail to self-deport face forced removal. Note that previously, the Trump administration had promised to scrutinise immigration visas, particularly targeting F-1 visa holders, as reported by The Core.

—🔩 Steel Under Pressure. India’s stainless steel industry is heading into Q1 FY26 under stress, with a surge in low-cost imports from China and Vietnam, volatile raw material prices, and global uncertainty weighing on margins, per The Economic Times. Despite having 7.5 million tonnes of capacity, 40% remains unused. India relies entirely on imports for nickel, and scrap availability is just 25–30% of demand. Finished steel imports are projected to hit 1.3 million tonnes this year. While long-term demand looks strong, short-term pressure is mounting across the supply chain.

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas