Supply Chain Resilience: Evidence from Indian Firms

We characterize what features make supply chains more resilient.Using new data on the universe of firm-to-firm transactions from an Indian state, we identify firms with larger supplier risk following the Covid-19 lockdowns.Using an event-study design we find firms with suppliers in strict-lockdown districts experienced 4.5pp higher separation rates (a 15% increase relative to baseline).We study which characteristics increase supply-chain resilience.Firms that buy more complex products, with fewer available suppliers, are less likely to break links.We explore how firms change post-shock supplier composition.Firms with higher supplier risk form new links with larger and better-connected suppliers.