India emerges as a key alternative in global supply chains as businesses seek diversification from China.
In 2025, India is positioning itself as a strategic alternative to China in global supply chains. With increasing geopolitical tensions and trade uncertainties, businesses are seeking diversification to mitigate risks associated with over-reliance on Chinese manufacturing.
China’s economic growth is projected to slow from 4.8% in 2024 to 4.2% in 2025, while India’s growth remains robust at 6.6%, the highest among major emerging economies (). This economic resilience, coupled with India’s large consumer market and improving infrastructure, makes it an attractive destination for companies looking to diversify their supply chains.
Several global brands are already shifting production to India, leveraging its cost-effective labor, skilled workforce, and favorable investment policies. Additionally, India’s participation in regional trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), enhances its connectivity with other Asian markets, further strengthening its position in global supply chains.
Key Takeaway: India’s strategic initiatives and economic resilience position it as a viable alternative to China in global supply chains, attracting businesses seeking diversification.