India is a Strong “China Plus One” Contender, But Supply Chain Strategies Need to Be “China Plus Many”

 

In an era of the evolving global supply chain, businesses are looking beyond China, a traditional manufacturing behemoth, for diversification. The reasoning is clear: mounting political tensions and escalating costs have driven companies to explore alternative supply chain strategies. India often surfaces as a likely contender for a “China Plus One” strategy with its vast labor force.

Yet, it faces its own challenges; despite a sizable workforce, only 14% of its economy focuses on manufacturing, compared to China’s 27%. Vietnam offers a contrasting landscape: it boasts robust manufacturing but lacks the workforce. This geographic patchwork of resources and capacities underscores a pressing need for businesses to adopt “China Plus One” or even ‘China Plus Many” supply chain strategies to fortify a global supply chain. As Dr. Craig Austin, the Associate Teaching Professor at Florida International University, suggests, resilience in today’s volatile market means having a presence in multiple locations.

Dr. Austin’s Thoughts on “China Plus One”

“There’s no question that businesses are exiting China because of the political environment, because of costs are too high. And so, it’s really, strategy of ‘China plus one’ or ‘China plus many’ places.

Many have tried to go to India. The problem with the India is like the alternatives. It has enough labor, but it doesn’t have sufficient manufacturing. Fourteen percent of its economy is devoted to manufacturing versus twenty seven percent for China.

If you go to Vietnam, they have manufacturing, but they don’t have enough labor. And so, this goes across. And so you really have to pursue a strategy of being in more places than one if you’re going to make your supply chain resilient. And that’s really the strategy.”

Article written by Cara Schildmeyer.

Follow us on social media for the latest updates in B2B!

Image

Latest

Greener future in HVAC
Scale Smarter in HVAC: Balancing Growth with Employee Engagement
May 27, 2025

The HVAC industry is undergoing significant growth, driven by increased suburban migration and a surge in home renovations requiring system upgrades. The U.S. HVAC market is projected to expand at a compound annual growth rate (CAGR) of 7.4% from 2025 to 2030. As businesses scale to meet this demand, balancing expansion with retaining strong…

Read More
educational choice
Educational Choice Isn’t Enough—Implementation Will Make or Break It
May 26, 2025

The U.S. education landscape is undergoing a seismic shift as more states adopt education savings accounts (ESAs), signaling a broader push toward personalized, parent-directed learning and broader educational choice. With over a dozen states now offering universal ESA programs, debates around school choice have reached a new level of urgency. Throughout 2024, enthusiasm for…

Read More
women in security
Breaking Barriers: Women Leading in the Security Industry
May 26, 2025

Despite growing gender diversity in many industries, the security field continues to be largely male-dominated. However, that landscape is evolving as more women in security step into leadership roles, challenge long-standing norms, and contribute to a more inclusive culture. Through mentorship, development programs, and increased visibility, this shift is not only empowering individuals but also…

Read More
risk intelligence
Securing the Future: AI, Risk Intelligence & The Protection of High-Value Assets
May 26, 2025

From AI-driven surveillance to dynamic mobile guarding, the way we secure commercial real estate, corporate campuses, and critical infrastructure is undergoing a major transformation. As high-value assets face increasingly complex threats, security is no longer just about cameras and guards—it’s about predictive insights, global awareness, and resilience planning. According to a Securitas discussion, real-time risk…

Read More