During the relevant period being reviewed, the global trade landscape takes center stage as a landmark U.S.–India agreement promises to slash tariffs and reshape sourcing strategies by March ’26.
Domestically, the push for resilience is accelerating, which is supported by massive infrastructure investments. This ranges from Eli Lilly’s new USD 3.5 billion pharmaceutical hub to the launch of Project Vault, which is a USD 12 billion critical minerals reserve. Legal wins for offshore wind projects also signal a shift in energy logistics. The underlying challenge remains in data orchestration. Also, unifying fragmented systems would now be the baseline for navigating these complex market fluctuations.
The recent U.S.–India trade announcements represent a significant shift in strategic intent. This is with Indian Trade Minister Piyush Goyal, on 5 February ’26, confirming that the formal deal was expected to be signed during March ’26. The proposed reduction of U.S. tariffs on Indian goods from a previous 50% to 18% and India’s potential pivot from Russian crude oil to at least USD 500 billion in American energy and technological purchases offer major competitive implications. However, this deal presently lacks the granular details needed for immediate execution.
A joint statement is expected to outline the first official timeline within days. However, for supply chain professionals, uncertainty remains on specific HS code tariff schedules besides the rules of origin. Formal documentation is expected to be finalised next month. Logistics leaders should treat these developments as strategic options until then. They would need to focus on scenario modelling and monetary regulatory updates. This should occur before committing to structural shifts in sourcing or manufacturing.
Achieving end-to-end supply chain orchestration would require overcoming the persistent barrier of siloed and fragmented data. During a recent survey of 450 supply chain practitioners, it was highlighted that nearly half of organisations struggle with little to no integration across disparate systems. This led to significant gaps in operational transparency and visibility. Many leaders are adopting an ‘ultimate control tower’ approach to move beyond traditional management silos. This strategy uses real-time data and predictive modelling to synchronise planning, sourcing and logistics. This approach emphasises the importance of witnessing, understanding, and optimising data. In other words, organisations can benefit from agility before taking action. Such agility is needed to respond to market fluctuations and disruptions. Unifying data across multi-tier networks permits quicker decision-making and improved margins. This effort is without the need to replace existing legacy systems.
Eli Lilly and Company has announced a USD 3.5 billion investment. This is to build a new injectable medicine and device manufacturing facility in Lehigh Valley, Pennsylvania. This site is the 10th U.S. manufacturing facility. The company made the announcement in 2020, six years ago. It will focus on producing next-generation weight-loss therapies. It would specialise in the investigational triple hormone receptor agonist retatrutide. This project is expected to create 850 high-value permanent roles and 2,000 construction jobs. Operations are intended to commence in another five years, by 2031. Ensuring a resilient and modern supply chain, Lilly intends to integrate advanced technologies such as AI. Additionally, Lilly plans to incorporate machine learning and real-time data analytics into its operations. Lilly expects this expansion to enhance the domestic production of essential medicines. It is also expected to drive significant local economic activity. It would also further strengthen the regional life sciences infrastructure.
The administration has launched a project vault. It is a USD 12 billion investment initiative to establish a U.S. Strategic Critical Minerals Reserve. It’s targeted at reducing dependence on foreign supply chains for essential minerals. The U.S. Export-Import Bank supports this public-private partnership with a USD 10 billion loan. Additionally, the private sector is contributing a further USD 2 billion in financing. Initial participation is expected from major OEMs, like General Motors, Boeing, and Western Digital. It’s designed to protect sectors such as defence, energy and automotive from supply shocks.
