India is gradually benefiting from recent changes in global manufacturing, sourcing, and supply chains, at the expense of China.
The global manufacturing landscape is being drastically redrawn for export due to a half-decade of upheaval that has included trade battles, the pandemic, natural disasters, severe supply constraints, Brexit, the war in Ukraine, and increasingly assertive industrial policies.
According to a recent analysis by Boston Consulting Group, US goods imports from China fell by 10 per cent between 2018 and 2022 in inflation-adjusted figures, but surged by 44 per cent from India, 18 per cent from Mexico, and 65 per cent from the 10 ASEAN member nations.
For instance, from 2018 to 2022, US imports of mechanical machinery from China decreased by 28 per cent, while imports from Mexico, ASEAN, and India climbed by 21 per cent, 61 per cent, and 70 per cent, respectively.
According to the report, India has been a major victor in the global manufacturing arena over the past five years, with its exports to the US rising by $23 billion, or 44 per cent, between 2018 and 2022, while China's exports to the US fell by 10 per cent over the same period.
With their great consumer presence on American stores, Indian products are likewise becoming more and more popular. The largest retailer in America, Walmart, is importing more goods from India, which means more items bearing the Made-in-India label are being sold in its US stores.
With their great consumer presence on American stores, Indian products are likewise becoming more and more popular. The largest retailer in America, Walmart, is importing more goods from India, which means more items bearing the Made-in-India label are being sold in its US stores.
Walmart seeks to source in a variety of areas, such as food, consumables, health and wellness, general products, clothing, shoes, home textiles, and toys, where India excels. The goal of sourcing $10 billion worth of items annually from India by 2027 is on schedule, according to Andrea Albright, executive vice president of sourcing at Walmart, who spoke with ET about this. The largest retailer in the world already counts India among its top sourcing destinations, with yearly exports to the country valued at over $3 billion.
