The shift away from China is leading to India, notes Boston Consulting Group Report

As U.S. companies continue to shift away from Chinese manufacturing, a new frontrunner has emerged. A new study by Boston Consulting Group (BCG) has found that India may be the biggest winner, with exports to the U.S. increasing by $23 billion, a 44% increase from 2018 to 2022.

From a pandemic and natural disasters to trade wars and supply backlogs, years of continued trade disruption have driven many companies to shift where they manufacture and source product, with more than 90% of the North American manufacturers surveyed by BCG relocating some production from China in the past five years. The same number say they plan to make similar moves in the next five years.

India, Mexico and Southeast Asia show promise as future manufacturing hubs

The study highlights India as a notable future export destination, in addition to Mexico and Southeast Asia. What these areas have in common is competitive cost structures, large labor pools, and growing scale and capabilities across industries. Where India stands out is its large domestic market and favorable government incentives. However, the country is still limited by infrastructure and logistics policies.

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