Strength Through Diversification: Opportunities across Asia Pacific

FIGURE 3: MIX OF MANUFACTURED GOODS IMPORTED IN THE US FROM ASIAN LOW-COST COUNTRIES

Source: Moody’s Analytics, National Statistics Agencies

Manufacturing sector growth in these markets has not just been due to the lower cost base. The need for diversification in supply chains, not least due to COVID-related bottlenecks, as well as supportive government policy have also contributed. In India, the Modi government’s “Make in India, Make for the World”, is a

major policy drive to grow manufacturing’s share of GDP through reducing reliance on imports but also driving export growth. Increasing industry specialisation has also played a contributing role. Together, these factors suggest there are multiple options for developing new hubs across the region.

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DRIVERS OF CHANGE IN ASIA PACIFIC