India’s infrastructure growth aims to attract foreign companies by providing a supportive business environment. This trend is expected to accelerate over the next five years as India closes the gap with China.
Supply Chain Management Review spoke to Samir N. Kapadia, founder and CEO of India Index, who outlined six compelling reasons companies may choose India over China for future supply chain needs.
1. Rising tariffs and costs
Tariffs placed on imports from China in 2018 have contributed significantly to a need to move American business elsewhere.
2. Concerns over intellectual property theft
The Five Eyes intelligence-sharing network, made up of officials from the United States, Britain, Canada, Australia, and New Zealand, recently accused China of stealing secrets across various sectors, including innovations from quantum technology and robotics to biotechnology and artificial intelligence.
3. Fear of reputational risk
“The reputation of a company can be very much hinged upon the way they conduct supply chains,” said Kapadia.
4. Economic growth in India
As the fastest-growing economy in the world at a rate of 7.2% GDP, India is becoming an interesting alternative for global trade.
5. The promise of aligned political landscapes
Political alignment between India and the U.S. makes India an appealing alternative to China. 53% of U.S. executives see political risk as the top concern with China, versus only 12% for India.
6. Large corporate commitments
Major companies such as Tesla, Apple and Walmart are leading the way, with Walmart pledging $10 billion in annual imports from India by 2027. These anchor companies will show others that India can successfully supplement China for manufacturing and supply chains.
Last updated: December 26th, 2025
