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US executives more likely to choose India over China for supply chain needs: Survey
The survey uncovered several notable insights regarding supply chain preferences between India, China, and the US
US C-Suite executives showed a significant preference for India over China / Image - Pixabay
According to a survey, majority of executives in the United States expressed willingness to consider sourcing from India if they were aware that India had access to the same materials as China.
The data revealed that 61 percent of the 500 US C-Suite executives surveyed by OnePoll, showed a preference for India over China for their supply chain requirements, with a threefold higher likelihood of choosing India.
The survey also revealed the top concerns cited by these executives when trading with China, they included political risk (53 percent), intellectual property (IP) theft (54 percent), and quality risk (45 percent). Additionally, 26 percent of respondents considered trading with China "very risky," while only 12 percent expressed the same level of concern about trading with India.
"The shift in institutional money from China to India isn't going to be the only thing that we're going to see shift. As the poll data clearly shows, we're also going to see how the supply chain transforms globally," said Samir Kapadia, founder and CEO of India Index.
"For years, we knew that the US and India would enter into a long term trade relationship akin to that of China, but that really hasn't accelerated significantly until now…the survey results reveal true alignment, not just with the positive sentiment coming in from business executives, but also external shareholder pressures due to forced labor concerns, intellectual property theft, and reputational risk abroad,” he added.
According to the Census Bureau report a notable decrease of 24 percent was observed in US imports from China compared to the previous year during the first five months of 2023. This decline coincides with a trend observed among various companies, including HP, Stanley Black & Decker, Apple, and Lego, which have initiated measures to reduce their dependence on China, signaling a potential shift or decoupling from the Chinese market.
"While US trade with China will still continue, we now have data that validates that many US executives will start to slowly decouple from China in the year ahead and consider other trading partners such as India," Kapadia highlighted
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