In recent years, the global business landscape has witnessed a significant shift as companies look beyond China for their manufacturing needs. This shift, popularly known as the ‘China Plus One’ strategy, aims to diversify supply chains and reduce dependence on a single country. India, with its vast potential and competitive advantages, has emerged as a preferred destination for businesses looking to expand their operations.

In this blog post, we will explore the importance of building capacity in India to fully capitalize on the China Plus One strategy. We will discuss how India can leverage its strengths and create opportunities for both domestic and international businesses.

Section 1: Unlocking India’s Potential

India is home to a young and dynamic workforce, abundant natural resources, and a thriving entrepreneurial ecosystem. These factors, coupled with recent policy reforms aimed at improving the ease of doing business, make India an attractive investment destination. By building capacity in key sectors, India can harness its potential and become a major player in the global supply chain.

One such sector where India has a competitive advantage is manufacturing. The ‘Make in India’ initiative, launched by the government, has already gained traction and has attracted several multinational companies to set up manufacturing facilities in the country. With a focus on improving infrastructure, streamlining regulations, and providing incentives to investors, India is well-positioned to become a manufacturing hub.

Section 2: Creating Opportunities for Domestic Businesses

Building capacity in India not only benefits international businesses but also creates numerous opportunities for domestic companies. As foreign companies set up manufacturing units in the country, there is a demand for local suppliers and service providers. This opens up avenues for small and medium-sized enterprises (SMEs) to collaborate with larger players and become a part of the global value chain.

Moreover, as the manufacturing sector grows, it creates employment opportunities and boosts the overall economy. A thriving manufacturing sector not only generates jobs but also fosters innovation and technology transfer. This, in turn, enhances the competitiveness of domestic businesses and strengthens India’s position in the global market.

Section 3: Leveraging Global Trade Opportunities

The China Plus One strategy presents an opportunity for Indian businesses to tap into global trade flows. By building capacity and enhancing competitiveness, Indian companies can not only cater to the domestic market but also explore international markets. The government’s focus on export promotion through initiatives like the Export Credit Guarantee Corporation (ECGC) and the Indian Trade Portal provides support to businesses looking to expand their global footprint.

Additionally, India’s strategic location, with access to major shipping routes, positions it as a gateway to lucrative markets in Europe, the Middle East, and Southeast Asia. By leveraging its geographical advantage and building capacity, India can emerge as a key player in global trade and attract investments from around the world.


As the world undergoes a transformative shift in supply chain strategies, India has a golden opportunity to position itself as a preferred destination for businesses seeking to diversify their operations. By building capacity in key sectors, India can unlock its potential, create opportunities for domestic businesses, and leverage global trade flows. The government’s support in the form of policy reforms and export promotion initiatives further strengthens India’s position on the global stage. With an optimistic outlook and a focus on building capacity, India is well on its way to becoming a key player in the post-China Plus One era.

By Editor

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