India emerging as a major beneficiary of ongoing realignment of global supply chains, says ASSOCHAM study

India is rapidly strengthening its position as one of the world's leading manufacturing destinations and is emerging as a major beneficiary of the ongoing realignment of global supply chains, according to a new ASSOCHAM study titled "Global Manufacturing Undergoing Strategic Realignment: India Emerges as a Key Beneficiary of Supply Chain Diversification." The study highlights that the post-pandemic world has fundamentally reshaped global manufacturing dynamics. While China remains the world's largest manufacturing economy, new manufacturing investments and production capacity are increasingly being distributed across multiple economies as global firms adopt China+1, nearshoring and friendshoring strategies to build resilient and diversified supply chains.

The analysis, covering the world's ten largest manufacturing economies, which together account for nearly 65% of global manufacturing output, reveals that India has emerged as one of the "Emerging Manufacturing Leaders" by significantly improving its manufacturing performance relative to the global average in the post-pandemic period. According to the report, India's average manufacturing growth rose from 3.44% in the pre-pandemic period (2016-19) to 4.15% in 2022-25, moving from below the global average to nearly two percentage points above the world benchmark. This remarkable improvement reflects India's growing competitiveness in the evolving global manufacturing landscape.

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