According to IMA India’s 2023 Global Operations Benchmarking Report, the nation is becoming a more popular choice for MNCs. According to a survey of 100 CEOs, the majority of whom work for global B2B firms, India is the country that multinational corporations are most interested in as a replacement for China.
According to the report, 88% of CEOs of businesses with a presence in India picked India over China as their preferred alternative because of China’s increased geopolitical assertiveness, questionable trade and commercial practices, and rising labor costs.
Due in part to diversification away from China, international MNCs have grown their on-ground presence in India during the past five years. According to Suraj Saigal, Research Director, IMA India, “IT and ITES businesses are increasing the percentage of their worldwide workforce that is headquartered in India.
According to research based on the survey, over 70% of the organizations have witnessed major changes in their business strategies based on on-the-ground operations in China during the past three years. In comparison to the services sector, the industrial sector shows a more dramatic slowdown. In 41% of situations, the number of individuals making changes has decreased, while 56% have reduced their investments and sourced less from China.
A small number of businesses have left the sector, but 6% have decreased their market share. The research also examined how firms are recognizing and capturing India’s economic opportunities while taking into account recent changes in commercial and geopolitical strategies.
