Supply Opportunities in India
April 14, 2023
India has one of the world’s fastest-growing economies, simultaneously experiencing rapid expansion in recent decades and significantly dropping poverty rates. India’s population recently exceeded that of China to become the largest in the world and the working-age population is projected to expand by almost 100 million in the period to 2030. India is often viewed as a top contender in the region, due primarily to its large population and low labor costs. The Indian Ocean region is primed to become a major manufacturing hub as costs in China and other manufacturing centers are rising. Major investments in infrastructure have been made in the area to support this goal. Due to these factors, India could soon become the next low-cost manufacturing hub, replacing China.
India provides a strong future growth opportunity. With a presence in many high-tech and fast-growing sectors, India’s economy has managed to grow by an average of 7.4% over the past decade, withstanding a great deal of volatility and disruption. India and the United States have deliberately been strengthening their relationship over the past decade, with the U.S. viewing India as a counterweight to the rising influence of China. This report outlines opportunities in India for Virginia companies looking to strengthen and diversify their international supply chains.