South Asia: The manufacturing
powerhouse of the future
South Asia is becoming the new powerhouse with high growth rates and low labor costs.
Glovendor's journey so far
Glovendor’s South Asia Procurement Network
Top Destinations
Pakistan
India
Bangladesh
Sri Lanka
Overview
As the largest country of South Asia, India exports $146 billion worth of goods to the United States. Bangladesh’s garment industry has witnessed a decade of growth. Pakistan’s industrial sector accounts for 28.11% of the economy which includes key manufacturing hubs specializing in leather, textiles, sporting goods, and surgical instruments.
Trends
ndia’s manufacturing sector continues to grow with government and foreign investment.
US companies continue to relocate their manufacturing to India.
Bangladesh remains one of the top choices for textiles in the world.
Pakistan’s depreciating currency makes manufacturing even more affordable.
Benefits
- Significantly lower labor costs than China
- Huge savings with large order quantities
- A lot of foreign investment in manufacturing particularly in India
- Highly specialized manufacturers in niches like sporting goods, surgical instruments, pharmaceuticals, and textiles
Risks
- Factories only work on higher quantity orders
- Supply chain network not as professional
- Hard to vet suppliers, increasing likelihood of fraud
- Not specialized in all products like China
Top Products
Surgical Instruments
Pharmaceuticals
Packaging
Textiles
Leather
Food & Beverage
Sporting Goods
Verdict
South Asia is the most economical option if you have large order quantities and the right supplier. It is one of the best alternatives to China and a top choice to pursue in sporting goods, textiles, leather, surgical instruments and pharmaceuticals.