Dr. Ling Xiao (with AI assistance)
With the return of U.S. tariffs on Chinese goods now a political reality—not just a possibility—“China + 1” is back on the strategic table for many CEOs.
India often leads the list of alternatives. The appeal is obvious: a large, educated workforce, lower costs, and a growing digital and services economy.
But moving from China to India isn’t just a political or pricing decision.
It’s an operational one.
And the real question isn’t talent. It’s industrialization.
India has scale. It has ambition. But can it deliver at the level global execution demands? That’s where the challenge lies.
Industrialization, in this context, isn’t about factories—it’s about systems. Operations need to be repeatable, reliable, and scalable. That means logistics that move, power that stays on, and processes that hold under pressure. Without that kind of structure, cost advantages erode quickly. Offshoring becomes rework. Scale becomes noise.
India has clear advantages in talent and cost. But its underlying constraints are structural. Infrastructure remains inconsistent. Regulatory processes vary by region and often move slowly. Skill gaps persist, especially between formal education and the realities of global delivery. And local management maturity doesn’t always keep pace with growth.
None of these are dealbreakers—but they are real. And they don’t disappear with headcount or enthusiasm.
India works best as part of a China + 1 strategy when expectations are aligned. It’s not a like-for-like replacement for China’s manufacturing backbone. It requires careful selection of what’s offshored, how operations are supported, and where reinforcements are needed.
At StrategyCheck, we help CEOs evaluate global options not just on price—but on capability. Because strategy only works when execution does.