Global Supply Chain Shifts Drive Competition for FDI, Survey

As global supply chains undergo significant realignment, competition for foreign direct investment (FDI) is intensifying, according to a recent survey conducted by PwC Singapore and commissioned by Eastspring Investments.

The survey, detailed in the whitepaper titled “New Anchors Reshaping Supply Chains,” reveals that regions such as India, Mexico, South-East Asia, Emerging Europe, and South America are expected to benefit from these shifts as businesses seek to diversify their manufacturing bases and mitigate risks associated with geopolitical tensions, trade disruptions, climate events, and rising costs.

In particular, India emerges as a focal point for future investment, driven by its booming manufacturing sector and promising market potential. Business leaders recognize India’s significance in the evolving global supply chain landscape, anticipating increased investment in the country.

The findings underscore the importance of various factors in attracting FDI, beyond geographical considerations. Sidharta Sircar, a partner at PwC Singapore, highlights the significance of an ecosystem conducive to investment and the maturity of local capabilities as crucial factors for companies evaluating FDI opportunities. Additionally, the presence of robust local demand within a market or region plays a pivotal role in shaping investment decisions.

The survey indicates that businesses are actively pursuing long-term strategies to realign their supply chains in response to evolving market dynamics. While geographical proximity and operational efficiencies remain important considerations, the ability of a market to offer a conducive business environment and tap into emerging demand centres emerges as key differentiators.

In conclusion, as supply chains continue to evolve in response to global challenges and opportunities, regions that can offer a combination of strategic advantage