Navigating Structural Volatility: Rewiring Global Supply Chains

A World Economic Forum report highlights the structural volatility in global supply chains. It emphasizes the need for companies and governments to prioritize resilience and adapt to changes caused by geopolitics and technological shifts to maintain competitiveness and secure investments.

Global supply chains are facing an era of structural volatility, compelling companies and governments to reassess investment and production strategies. According to a report by the World Economic Forum, three out of four business leaders now see resilience as crucial for growth.

Released ahead of the WEF's annual meeting in 2026, the report indicates this volatility stems from a fundamental shift in global value chains, influenced by geopolitics, industrial policy, and technology. Insights were gathered from over 100 consultations with industry, governance, and academia leaders, along with survey data from more than 300 senior executives.

The report advocates for strategic imperatives for industry and a blueprint for industrial policy. An interactive tool accompanies it, aiding in assessing manufacturing risks and strengths. The report also highlights Tamil Nadu, which boasts a stable investment climate attracting global companies due to political stability and effective policies.

(With inputs from agencies.)