United States Trade Representative Ambassador Jamieson Greer has said India is well placed to serve as a strategic anchor in global supply chains as American companies reduce dependence on China, describing the country as a potential “way station” in the restructuring of trade flows.Speaking to Fox News on Tuesday, Greer said many US firms already view India as a practical alternative for manufacturing and sourcing, citing its industrial capacity and vast labour pool. Asked whether India could emerge as the preferred destination for companies shifting production out of China, he responded that India “already fits that role for many firms”, pointing to its scale and growing integration with global markets.
The remarks come at a time when Washington continues to recalibrate its trade and economic policies amid heightened geopolitical tensions and supply chain disruptions that began during the pandemic and have since been compounded by strategic rivalry with Beijing. Successive US administrations have pursued a “China plus one” approach, encouraging diversification rather than complete decoupling, while maintaining tariffs imposed during earlier trade disputes.
Greer’s characterisation of India as a “way station” reflects a broader shift in how policymakers view supply chain resilience. Rather than relying on a single dominant manufacturing base, companies are spreading risk across multiple jurisdictions. India, alongside countries such as Vietnam and Mexico, has attracted attention from multinational corporations seeking to hedge against tariff exposure, export controls and political uncertainty linked to China.
Over the past few years, global technology and electronics manufacturers have expanded operations in India. Apple suppliers including Foxconn and Pegatron have increased assembly of iPhones in Tamil Nadu and Karnataka. Semiconductor and electronics production has also received policy support through incentive schemes designed to boost domestic manufacturing. Government data show a rise in mobile phone exports, positioning India as one of the fastest-growing electronics exporters among emerging economies.
Greer’s comments also align with Washington’s broader economic security strategy, which emphasises trusted partnerships with countries that share strategic interests. India has strengthened ties with the United States through forums such as the Quad, alongside Japan and Australia, and through bilateral initiatives covering defence, critical technologies and clean energy.
Yet challenges remain. Despite improvements in logistics and regulatory reforms, companies often cite land acquisition hurdles, infrastructure bottlenecks and compliance complexity as constraints on scaling production. Labour laws have been consolidated into new codes, though implementation varies across states. Analysts say sustained investment in transport networks, ports and power supply will be critical if India is to compete with established manufacturing hubs in East Asia.
Trade figures illustrate both progress and imbalance. Bilateral goods trade between the United States and India has grown steadily, surpassing $190 billion in 2023 according to official statistics. The United States has become one of India’s largest trading partners, while India ranks among Washington’s top trade counterparts. Services trade, particularly in information technology and business process outsourcing, remains a strong pillar of the relationship.
Greer’s remarks also arrive amid ongoing discussions about market access, digital trade rules and tariff disputes. Although India withdrew from the Regional Comprehensive Economic Partnership in 2019, it has pursued targeted trade agreements with partners such as the United Arab Emirates and Australia. Negotiations with the United Kingdom have advanced, while engagement with the European Union has resumed. In Washington, lawmakers and industry groups continue to debate the scope of future trade frameworks in the Indo-Pacific.
Strategists argue that India’s demographic profile offers a long-term advantage. With a median age under 30 and a workforce projected to expand over the coming decades, the country is often cited as a counterweight to ageing populations in China and parts of Europe. Education and skills development, particularly in engineering and digital technologies, have supported growth in pharmaceuticals, automotive components and software services.
At the same time, economists caution that scale alone will not guarantee success. Competing destinations in Southeast Asia have developed specialised manufacturing ecosystems over decades. Vietnam has captured a significant share of electronics and garment production, while Mexico benefits from proximity to the US market under the United States–Mexico–Canada Agreement. For India to become a primary node in American supply chains, observers say, policy stability and predictable taxation will be essential.
Greer’s framing of India as a transitional hub underscores the fluid nature of supply chain realignment. Some companies are pursuing partial relocation rather than full withdrawal from China, maintaining dual production bases to serve different markets. Others are adopting regional manufacturing models, producing closer to end consumers to reduce shipping times and exposure to trade friction.
Security considerations also play a growing role. Export controls on advanced semiconductors, tightened investment screening and scrutiny of critical minerals have reshaped corporate planning. India has sought to position itself as a reliable partner in sectors such as rare earth processing and renewable energy manufacturing, areas seen as strategic by Western governments.