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!


improved usable range
An Advantage of 6.25 kHz Radios—Improved Usable Range
December 1, 2023

Improved usable range extends communication across various industries. Icom’s latest video highlights a significant advancement in radio technology that improves usable range, offered through NXDN™ 6.25 kHz radios compared to traditional 12.5 kHz models. The video explains how NXDN radios, operating at 6.25 kHz, provide a more usable signal over the same distance as […]

Read More
multipath resilience
Understanding the Advantages of 6.25 kHz Radios in Multipath Resilience
December 1, 2023

6.25 kHz radios offer an advantage in multipath resilience. In radio communication, multipath interference is a significant challenge, often leading to signal distortion and loss. This Icom video looks at the advantages of 6.25 kHz radios, particularly their resilience to multipath interference. The video delves into the technicalities of multipath interference – a phenomenon […]

Read More
IoT and tokenization
Revolutionizing Logistics with IoT and Tokenization: A Deep Dive into the Future
December 1, 2023

Revolutionizing logistics with IoT and tokenization—this core theme forms the crux of exploration in the latest episode of Semi-Related, an Optym Podcast. Host Chris Torrence, Chief Strategy Officer for Optym, engages with Todd Haselhorst, Founder/CEO of HEALE Labs, in a conversation that promises to reshape our understanding of the logistics industry. In this episode, […]

Read More