India Could Emerge as Major Alternative to China for U.S. Manufacturers, Georgia Business Leader Says

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ATLANTA–India has the scale, workforce and industrial capabilities to become a major alternative to China for American manufacturers seeking to diversify their supply chains, according to a leader of the Georgia Indo-American Chamber of Commerce.

S.K. Raj, a board member and former president of the chamber, said growing trade tensions between Washington and Beijing are prompting U.S. companies to explore manufacturing partnerships with India.

“If you look at the region, South Asia region, there is no other country that can compete with the Chinese in terms of size and capability than India,” Raj said in an interview.

His comments come ahead of the Atlanta India Trade Fair 2026, scheduled for November 18-20 at the Georgia International Convention Center in College Park, near Hartsfield-Jackson Atlanta International Airport.

The three-day event will bring together Indian manufacturers and American buyers to explore sourcing opportunities, industrial partnerships and potential investments.

According to the event’s organizers, more than 35 Indian manufacturers and over 600 buyers are expected to participate.

Raj, who serves as the event director, said the trade fair represents the chamber’s first major exhibition dedicated exclusively to manufacturers from India.

The initiative comes as American companies reassess their dependence on Chinese manufacturing amid tariffs, geopolitical tensions and concerns about supply chain security.

Raj said U.S. policymakers have been encouraging companies to reduce their reliance on China because of growing strategic concerns surrounding the country’s economic and industrial influence.

He identified several advantages that could help India attract a greater share of global manufacturing investment, including its large population, relatively young workforce and widespread use of English in business.

India also produces approximately 1.5 million engineers annually, Raj said, providing a substantial pool of technical talent for manufacturers seeking to expand their operations.

“So for all these reasons, all the manufacturers in the US, because of all the tariffs and other things, they’re looking at India as a potential alternative,” he said.

The upcoming trade fair builds on previous business exchanges organized by the Georgia Indo-American Chamber of Commerce.

Raj said the chamber previously hosted a delegation of approximately 50 senior executives representing more than 40 Indian companies. It subsequently organized a delegation of 25 participants who traveled to India to explore additional commercial opportunities.

Beyond encouraging American companies to source products from India, the chamber is also promoting direct investment by Indian manufacturers in the United States.

Raj said Indian businesses could gain significant advantages by establishing production facilities in the American market, particularly because goods exported from India continue to face U.S. tariffs.

“If you set up a shop here in the US and then you make it in the USA, you have tremendous advantage because a local market will be very, very receptive,” he said.

Although labor costs in the United States are generally higher than in India, Raj argued that differences in productivity and government incentives could help offset those expenses.

He cited the example of an Indian manufacturer of sweeping equipment that reportedly required approximately 150 workers in India to produce the same output that could be achieved with about 35 workers in the United States.

Raj also pointed to economic development incentives available in Georgia, saying qualifying manufacturers could receive between $5,000 and $7,500 per new employee over a five-year period.

“So if people think the cost of manufacturing in the US is prohibitively high, they cannot do it, they’re really, really wrong,” Raj said.

He added that the chamber provides assistance to Indian companies interested in establishing operations in Georgia through its network of volunteers and relationships with state economic development organizations.

These include the Georgia Department of Economic Development, the Small Business Development Center and the Governor’s Office.

According to Raj, the chamber offers its assistance without charging fees, helping prospective investors understand local business conditions and connect with relevant government agencies.

The Atlanta India Trade Fair is expected to provide a platform for expanding manufacturing relationships between India and the United States while encouraging Indian companies to consider Georgia as a destination for future investment.

The event also reflects growing interest in strengthening bilateral industrial cooperation as American businesses seek to diversify supply chains and Indian manufacturers look for new opportunities in the U.S. market. (Source: IANS)