Guide · Manufacturing
China plus one: is India the right move for your supply?
India is a strong China plus one option for textiles, leather, pharma, auto components and engineered parts, and a growing one for electronics. It is weaker where products depend on imported components. The safest way in is one product line, through contract manufacturing in India, before moving more volume. For a head-to-head view, read India vs China manufacturing.
In short
- China plus one means adding a second sourcing country, not always leaving China.
- India is competitive where it has deep supplier bases: textiles, leather, pharma, engineering, auto parts.
- Logistics, component imports and approvals can erase the unit price advantage: compare landed costs.
- Start with one product, a checked factory and a pilot run, then scale.
Not sure which route fits? Get your free India entry plan in two minutes.
Importing into the UK or the EU? Compare the UK duty on your product from India and China, or the EU duty under the India-EU trade deal.
Contents
Why buyers are adding a second country
Tariffs on Chinese goods in several markets, the factory shutdowns of the pandemic years and freight disruptions have shown buyers the cost of depending on a single country. Large brands have moved part of their production: Apple suppliers, for example, have expanded smartphone assembly in India.
For a smaller company, the goal is the same: keep supply running when one country has a problem.
Where India is strong, and where it is not yet
Strong today
- Textiles, apparel and home textiles
- Leather goods and footwear
- Generic pharma and supplements
- Auto components and engineered metal parts
- Chemicals and specialty materials
Check carefully
- Products built from many imported components
- Very low-cost, high-volume consumer goods
- Items needing specific local certifications first
- Tight lead times with complex logistics
India, Vietnam or Mexico?
| India | Vietnam | Mexico | |
|---|---|---|---|
| Strongest in | Textiles, pharma, engineering, chemicals | Electronics assembly, footwear, furniture | Automotive, appliances, for North America |
| Supplier depth | Deep in its core industries | Growing, many inputs from China | Strong near the US border |
| Domestic market | Very large | Medium | Medium |
| Suited to | UK, EU, US and UAE buyers | Asia-centred supply chains | US buyers wanting proximity |
How to start without risking your supply
- Pick one product line that Indian factories already make for export.
- Compare landed costs, not unit prices: duties for your product code, freight, inspections.
- Check the factory on site before paying for samples: middlemen often pose as manufacturers.
- Run a pilot order while keeping your current supplier, then shift volume step by step.
- Plan for growth: once volumes are stable, look at setting up a company in India for local quality and purchasing staff.
Questions about China plus one and India
What is a China plus one strategy?
Keeping part of your production in China while adding a second sourcing country, to reduce the risk of tariffs, lockdowns, freight disruption or political tension. It is about spreading risk, not always about leaving China.
Is India cheaper than China?
Sometimes, depending on the product. India is competitive in textiles, leather, generic pharma, auto components and engineered metal parts. For products that depend on imported components, unit prices can be higher. Compare full landed costs, including duties in your market.
India or Vietnam for China plus one?
Vietnam is strong in electronics assembly, footwear and furniture, with fast set-up for export factories. India offers a larger supplier base in textiles, pharma, chemicals and engineering, plus a huge domestic market. Many buyers use both for different product lines.
How long does it take to move a product line to India?
For contract manufacturing of a product that local factories already make, a few months from shortlist to pilot run is common. Products that need new tooling, certification or imported components take longer.
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General information, updated 2026. Not legal, tax or investment advice: rules change and every case is confirmed by qualified professionals in India. Expand into India introduces you to partners in India.