Supply-Chain Resilience, Diversification Emerging As Key Drivers Of Global Trade: Commerce Secretary

New Delhi, Sep 25 (KNN) Supply-chain resilience, multiple sourcing and diversification are emerging as important drivers of global trade alongside traditional comparative advantage, Commerce Secretary Rajesh Agrawal said, as geopolitical shifts and past disruptions reshape global sourcing strategies.

Speaking at the 13th Annual Forum 2026: India 3.0 – Engaging for Growth in a Disrupted World, Agrawal said India remains committed to the World Trade Organization and a rules-based trading system, but countries are increasingly looking beyond sourcing exclusively from the most efficient producers.

“The world is looking at not only sourcing from the most efficient quarters, they are also looking at trying to build resilience by multiple sourcing, diversifying, creating the right domestic environment or domestic manufacturing ecosystem,” he said, as quoted by ANI.

Efficiency Alone No Longer Sufficient

Agrawal said the COVID-19 pandemic demonstrated that supply-chain efficiency alone cannot shield economies from future disruptions, which may not always be geopolitical.

“It is not only the most efficient producer that is important. It is also resilience that is important,” he said.

He said the shift was affecting the traditional understanding of comparative advantage as the primary driver of international trade, with multiple factors now influencing sourcing and trade decisions.

However, Agrawal said comparative advantage and the distinctive strengths of individual economies would continue to underpin global trade. India’s free trade agreements, he said, are therefore being pursued based on the specific strengths and requirements of partner countries.

Government To Expand State-Level Export Data

Agrawal also said the government is working to make export data more granular at the state level. Current data largely reflects the location from which goods are shipped rather than where they are produced.

State-wise export metrics are expected to be added to the Intelligence and Analytics portal shortly, he said.

Department of Expenditure Secretary V Vualnam said central government capital expenditure has increased around five-fold over the past 10-12 years, with investments in railways, metro projects, highways and other infrastructure providing an important foundation for economic growth.

Statistics and Programme Implementation Secretary Saurabh Garg said technology has accelerated government data collection and processing, with surveys increasingly conducted through tablets. This could enable real-time availability of data at the national scale, he added.

(KNN Bureau)