2025: The Year of the Tiger or the Snake in Global Sourcing?
Global sourcing in 2025 is set to be a year of tariffs, protectionism, and geopolitical friction, reshaping the way companies approach supply chain management. With rising trade barriers and shifting global alliances, businesses that have long relied on China are now seeking alternatives.
While 2025 marks the Year of the Snake, symbolizing strategy and transformation, could it also be the Year of the Tiger—a bold shift in global sourcing trends? India is fast emerging as the top strategic sourcing destination, offering companies a safe haven from tariffs and geopolitical risks.
Many businesses are accelerating their supply chain diversification strategies, moving away from China toward India, Vietnam, and Türkiye. This shift reflects a growing need to reduce dependency on high-risk markets and secure cost-effective, tariff-friendly alternatives.
A Year of Tariffs, Protectionism, and Geopolitical Friction
As we navigate a year marked by increased tariffs, geopolitical friction, and protectionism, the reliance on China could be coming to an end. As we prepare for the year of the Snake could 2025 become the year of the Tiger as India becomes a safe haven and the new first choice for strategic sourcing.
Many companies are rapidly building and executing sourcing plans to derisk their supply chains. Moving reliance from China to a more balanced supply portfolio or in some cases removing China from their supply chains completely. India, Vietnam and Turkiye are all high on many companies planning as they all offer a safer haven for supply chains.
India: The Growing Choice for Global Sourcing
A recent survey conducted by OnePoll for India Index found that U.S. C-suite executives are now over three times more likely to choose India over China for their future supply chain needs. The key factors influencing this shift include:
- Tariff Avoidance: With trade tensions escalating and new tariff structures affecting global trade, India offers a tariff-friendly environment, reducing costs for businesses.
- Reduced Reputational Risk: Many Western companies face growing concerns over reputational risks associated with sourcing from China, including ethical and compliance-related challenges.
- India’s Economic Boom: As the world’s fastest-growing major economy, India presents a stable and scalable manufacturing hub.
- Political Alignment: According to the survey, 53% of executives cited political risk as a major reason for moving away from China. India’s strong international relationships provide a more stable environment for long-term sourcing strategies.
With these benefits in mind, more companies are aggressively executing sourcing strategies to establish resilient, diversified, and cost-efficient supply chains.
Strategic Sourcing: Taking Action to Stay Ahead
With impending global tariff wars and shifting geopolitical dynamics, companies that act swiftly will gain a competitive advantage by:
- De-risking their supply positions in China and reducing dependency on a single country
- Exploring new, lower-tariff sourcing markets such as India, Türkiye, Vietnam, and Mexico
- Rapidly executing sourcing strategies to protect profit margins
- Enhancing corporate risk management to build long-term supply chain resilience
ET2C International: Your Global Sourcing Partner
ET2C International global sourcing specialist, has been helping businesses navigate the complex world of procurement for over 23 years. With 200+ professionals across seven offices in major sourcing markets, including India, Vietnam, Türkiye, and Mexico, we offer:
- Rapid improvements in operating margins through strategic supplier selection and cost optimization
- Risk management solutions to mitigate disruptions in global sourcing
- Quality & compliance management to ensure production standards align with international expectations
Our New Delhi team provides deep market insights and direct access to India’s top manufacturers, enabling businesses to:
- Quickly develop a strategic sourcing plan tailored to their industry
- Secure supplier agreements with cost-effective terms
- Ensure compliance and quality control at every stage of production
To connect with our India team and explore rapid market access, contact contact@et2cint.com
Sourcing from India: Tariff Benefits and Competitive Advantage
India is rapidly becoming the strategic sourcing destination of choice for global businesses. Here’s why:
- Stable Economic Growth: India’s manufacturing sector continues to expand, supported by government incentives, tax benefits, and infrastructure investments.
- Skilled Labor Force: With a vast and growing workforce, India offers high-quality production capabilities at competitive costs.
- Reduced Political & Trade Risks: As Western countries impose higher tariffs on Chinese goods, India remains a safe and stable sourcing alternative.
- Improved Logistics & Infrastructure: With port expansions, improved transportation networks, and digital supply chain solutions, India’s logistics ecosystem is more robust than ever.
Why Businesses Must Act Now
Companies looking to avoid supply chain disruptions, mitigate tariff risks, and secure long-term cost advantages should act quickly. India’s rise as a global manufacturing powerhouse means competition for supplier capacity is increasing. Businesses that move early will gain priority access to top suppliers, better pricing, and more favorable contract terms.
To learn more about sourcing from India and develop a custom strategic sourcing plan, reach out to our New Delhi team at contact@et2cint.com
