According to a BCG study quoted in an ET report, India's manufacturing success in the global arena over the last five years has been notable, and it has emerged as a winner. During this time, Indian exports to the United States increased by $23 billion, representing a 44% increase from 2018 to 2022. In contrast, China's exports to the United States fell by 10%.

The report, titled 'Harnessing the Tectonic Shifts in Global Manufacturing,' sheds light on the transformation of manufacturing and sourcing across industries. Trade disputes, the pandemic, geopolitical tensions, and supply chain disruptions have all contributed to this shift. As a result, global corporations have had to reconsider their manufacturing and sourcing strategies, with India emerging as a viable option.

The study emphasises India's cost advantage in direct manufacturing as an export platform. According to BCG calculations, the average cost of Indian-made goods imported into the US is 15% lower than the cost of goods manufactured in the US, after accounting for factory wages, productivity, logistics, tariffs, and energy. Chinese goods, on the other hand, offer only a 4% cost advantage over US-made goods and are 21% more expensive when subject to trade war tariffs imposed by the US.

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