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Business
Southeast Asia Surpasses India in Adopting China+1 Strategy, Statsguru Finds
✍️ Business Standard
🗓 21 Sep 2026, 08:16 AM
👁 13
According to Statsguru, Southeast Asian nations have overtaken India in leveraging the China+1 strategy to diversify supply chains and reduce dependency on China.
Statsguru’s latest analysis reveals that Southeast Asian countries now lead India in the adoption of the China+1 strategy, a framework that encourages firms to diversify production by adding a secondary partner to China. The data indicates a growing trend among nations such as Vietnam, Thailand, and Indonesia to shift portions of their manufacturing footprints away from sole reliance on Chinese suppliers.
The China+1 approach has been promoted by governments seeking to mitigate risks associated with geopolitical tensions and supply chain disruptions. By establishing a secondary base, companies aim to maintain continuity while balancing cost advantages.
India’s position in this ranking has slipped, prompting policymakers to reassess their own diversification policies. While the country has encouraged foreign investment, the pace of shifting supply chains remains slower compared to its regional peers.
Experts note that the shift reflects broader economic realignments in Asia, with firms increasingly prioritizing resilience over cost alone. The trend may influence future trade agreements and investment flows across the region.
The China+1 approach has been promoted by governments seeking to mitigate risks associated with geopolitical tensions and supply chain disruptions. By establishing a secondary base, companies aim to maintain continuity while balancing cost advantages.
India’s position in this ranking has slipped, prompting policymakers to reassess their own diversification policies. While the country has encouraged foreign investment, the pace of shifting supply chains remains slower compared to its regional peers.
Experts note that the shift reflects broader economic realignments in Asia, with firms increasingly prioritizing resilience over cost alone. The trend may influence future trade agreements and investment flows across the region.