Many companies are looking to shift the balance of their supply chain operations to a more stable base. “India currently offers that stability,” says Manvir Dhaliwal, vice president of transformation and supply chain services with Corbus, which offers supply chain management solutions. Along with mitigating risk, shifting operations to India can open opportunities. India’s GDP has grown by about 8% annually for the past several years, meaning there are strong opportunities for growing companies, says Srikanth Sripada, managing director in the supply chain practice with West Monroe. A YOUNG, UNTAPPED WORKFORCE The availability of skilled labor and the presence of many high-tech companies also make India attractive. In addition, India’s location between the eastern and western hemispheres offers companies access to both sides of the globe, Sripada says. Companies can also bene t from India’s domestic consumer market, which is large and still growing. The middle class is anticipated to increase from 432 million in 2021 to 715 million by 2030 to 2031, topping one billion by 2047, according to the
Ministry of Commerce and Industry. “The opportunities for international companies to expand their customer base in India are signi cant,” Heragu says. Along with a solid consumer market, India offers one of the largest pools of highly educated, motivated professionals with deep expertise in both supply chain and technology, notes Jennifer Chew, vice president, solutions and consulting
with Bristlecone, a supply chain service provider that has helped many companies shift their operations to India. Also, many workers speak English, making it easy to transact international business. And with the supply of labor exceeding demand, wages tend to be low, particularly compared to China. Average annual salaries of production workers in India are less than $5,000, compared to about $12,000 in China, nds The India also enjoys a relatively low “dependency ratio.” This measures the ratio of dependents, or those who can’t work—such as children and older individuals—to the working-age population. India’s dependency ratio in 2024 was 47%, while the global average is about 58.4%. Given its abundance of technology talent, it’s not surprising that the top sectors invested in India are high-tech and tech-enabled services, as well as biotech and pharmaceuticals. India’s growing middle class and GDP also bode well for consumer goods, ecommerce, and retail. Reshoring Institute. IT DEPENDS
Average Salaries o Production Workers/ Machine Operators (World) Source year: 2022. Indeed.com; Glassdoor.com; Salaryexplorer.com; Salary.com; Payscale.com
$35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 0
The low cost of labor for production roles has attracted many companies to operate in India. SOURCE: Reshoring Institute
30 Inbound Logistics • March 2025
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