MDIM Journal of Management Review and Practice

From China to India: Navigating the Global Sourcing Landscape

Gursimran Kaur Ahluwalia¹ and Kanupriya²

First Published 24 Feb 2025. https://doi.org/10.1177/mjmrp.251315001

Article Information

Volume 3, Issue 1 March 2025

Corresponding Author:

Kanupriya, Department of Economics, Indian Institute of Foreign Trade (IIFT), Delhi 110016, India.
Email: Kanupriya@iift.edu

¹Student, EPGDIB (Summer), 2023-25, IIFT Delhi

²Department of Economics, Indian Institute of Foreign Trade (IIFT), Delhi, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.

Abstract

This article examines the transition of global sourcing hubs from China to India, driven by economic, political and social factors. A mixed methods approach using trade data and existing literature including relevant policies of the Government of India is employed for the purpose of analysis in this study. As per the findings of this work, the key drivers of this shift are India’s competitive labour costs due to an abundant labour force, favourable government policies and improving infrastructural facilities. The study concludes that while challenges on the fronts of customs, infrastructure, international shipments, logistical quality and competence, tracking and tracing and timeliness remain, India is poised to become a major player when it comes to global sourcing. These insights are crucial for businesses and policymakers aiming to navigate the evolving landscape of global trade sourcing. In sum, challenges and opportunities linked with India’s infrastructure and scalability for trade and logistics are crucial in determining its global role. As India strives to compete with China in becoming the next global sourcing hub, the importance of robust logistics and shipping networks cannot be ignored.

Keywords

China, global sourcing, India, logistical quality

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