ANALYSIS: India Embraces Opportunity as Multinational Companies Shift Production out of China

Workers prepare vermicelli, which is used to make traditional sweet dishes popularly consumed during the holy month of Ramadan, at a factory in Prayagraj, India, on March 22, 2023. Sanjay Kanojia/AFP via Getty Images

India, with the world’s largest population and a huge market, is benefiting from the global trend of “derisking” from China.

Market research firm IMA India released its “2023 Global Operations Benchmarking Survey” in May, which surveyed 100 business leaders representing international B2B (business to business) companies in India. It showed that 88 percent of CEOs preferred India over China as their top choice, despite facing infrastructure, legal restrictions, and skill-related problems as their major challenges in India.