INDIA’S ROLE IN GLOBAL SUPPLY CHAIN
As per the Organization for Economic Co-operation and Development (OECD), India has been consciously developing and enabling the environment to attract investment. India has emerged as one of the investment hot-spots, and its huge market has attracted the attention of various Multinational Enterprises with ESG data source. A relatively young population, a large workforce, and friendly investment policies have helped India integrate into global supply chains.
Some key facts:
70% of all new global business centers are opened in India.
India is the 4th largest automotive and auto component manufacturer globally and the 6th largest global chemicals exporting nation.
Indian Pharma companies supply 20% of the global generics market.
India’s yearly imports stand at ~$474bn of products and ~120B of services, and the top imports of the country include Crude ($92.7bn), Coal Briquettes ($24.9bn). India is the world’s biggest importer of coal, diamonds, palm oil, nitrogenous fertilizers, and soybean oil.
INDIA INC. DOES NOT EVALUATE THEIR SUPPLY CHAIN ON ESG
As per OECD’s due diligence guidance for responsible business conduct, businesses can play a significant role in contributing to economic, environmental, and social progress, especially when they minimize the adverse impacts of their operations, supply chains, and other business relationships.
Indian industry still does not evaluate their supply chain performance is amply clear from the above charts. Not many companies in India Inc. have the policy to promote responsible supply chains, and even fewer track their supplier ESG initiatives or seek targets from suppliers on their ESG analysis performance.
Summary Yesterday’s business leaders focused on beating quarterly profit targets.
Tomorrow’s successful business leaders will focus on sustainable profits.
Public anger at the lack of action on climate change, corruption, income inequality, tax avoidance, and other social ills makes it harder for CEOs to ignore sustainability.
The reluctance of many CEOs to fully engage with sustainability can be attributed to the age-old view that it will hurt profits.
However, according to GlobalData's research, companies that embrace all three elements of sustainability will outperform their peers.
CEOs that are too slow to improve their company’s approach to sustainability will see an exodus of customers and a drop in profits far sooner than they ever imagined.
