Chennai FTWZs can ease customs, working capital pressures for exporters

CHENNAI:
Free trade warehousing zones (FTWZs) in Chennai can help exporters reduce customs delays and ease pressure on working capital, according to DP World’s 2026 India Country Report.

The report, which was released on Monday, cites Chennai’s FTWZ, along with those at Nhava Sheva and Cochin, as examples of how businesses can manage rising trade volumes amid growing uncertainty.

The report states that Indian businesses are placing greater emphasis on resilience than their global counterparts. Supplier diversification is the leading priority, followed by increasing inventory and friend-shoring.

Technology adoption and entry into new markets are also key drivers, with more than half of Indian businesses having fully digitalised customer-facing services, compared with fewer than four in ten globally. AI is already improving route optimisation, documentation and customs efficiency, strengthening supply-chain resilience, ther report stated.

New free-trade agreements with the UK and the EU are expected to support trade, while tariff changes and geopolitical tensions continue to create uncertainty. The uncertainty is prompting companies to strengthen their supply chains. About 70% of Indian executives are diversifying suppliers, compared with 51% globally, while 59% are increasing inventories to guard against disruptions, the report added.