U.S. companies are increasingly viewing China as a risky bet for their supply chains, with many now looking to neighboring India as an alternative destination to set up operations.
A recent survey by UK firm OnePoll found that 61% of 500 U.S. executive-level managers would choose India over China if both countries could manufacture the same materials. Additionally, 56% preferred India over China to serve their supply chain needs within the next five years.
The survey showed 59% of respondents found sourcing from China “somewhat risky” or “very risky”, compared to just 39% for India. At least a quarter of the executives surveyed currently don’t import from either China or India.
The warming ties between the U.S. and India under President Biden’s “friendshoring” policy aimed at diversifying away from China have made India an attractive alternative supply chain option. Deals signed during Prime Minister Modi’s state visit to the White House in June on defense, technology and supply chain collaborations further boosted India’s appeal.
“The U.S. and China continue to sit in rather chilling air, whereas there is a constant stream of dialogues and agreements between the U.S. and India,” said Samir Kapadia, CEO of India Index.
India has seen a flurry of investment announcements recently, including Maruti Suzuki’s $4.2 billion plan for a new factory and VinFast’s $2 billion electric vehicle plant.
However, risks remain for U.S. firms considering India, with 55% of survey respondents citing quality assurance as a “medium risk”. Delivery risk and IP theft were also worries.
Last updated: December 26th, 2025
