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

healthcare operations
Healthcare Operations Improve with AI That Unites Data, Automation, and Ethics
June 18, 2025

Generative AI has captured the public imagination, but its most transformative use cases may lie far from flashy consumer tools. In healthcare operations, where complexity, inefficiency, and fragmentation remain persistent challenges, AI is now driving measurable improvements. Research suggests AI-enabled healthcare systems could cut administrative costs by up to $360 billion in the U.S. alone….

Read More
Clinical CBD
Verified, Tested, Trusted: How Corganics Ensures THC-Free Confidence in Clinical CBD
June 18, 2025

Corganics is redefining standards in clinical cannabinoid care with THC-free, medical-grade CBD products developed for use exclusively by healthcare professionals. Backed by Advanced Lipid Technology, FDA-registered manufacturing, and rigorous third-party testing, Corganics offers a level of trust and transparency rare in the CBD space. In a conversation with Reggie Gatewood, President of Corganics, Brooke Williams,…

Read More
Clinical CBD Drops
Corganics’ Clinical CBD Drops: Elevating Sleep and Patient Care at Beautiphi
June 18, 2025

Corganics’ Clinical CBD Drops—THC-free, medical-grade, and developed with Advanced Lipid Technology—are designed for healthcare professionals seeking a trusted, science-backed cannabinoid solution for their patients. Manufactured in an FDA-registered facility and third-party lab-tested, these drops are a cornerstone of Corganics’ clinical approach. At Beautiphi Aesthetic Boutique, founder Kelly Hermans, CRNA, has integrated the drops into patient…

Read More
leadership confidence
Liz Atlee on Leadership Confidence and Letting Go of Doubt – Raise Your Hand Anyway, Even When You Feel Unsure
June 18, 2025

In this episode of Professional Quotient: Conversations That Build Equity, host Jason Winningham welcomes legal powerhouse and mentor extraordinaire Liz Atlee for an honest conversation about leadership confidence, imposter syndrome, transparency in leadership, and the importance of simply raising your hand—even when you feel unsure. Liz brings a wealth of experience navigating high-stakes legal…

Read More