New Delhi - World Bank President Ajay Banga said India has a three-to-five-year window to cash in on the China+1 opportunity as companies seek alternative manufacturing sites to diversify supply chains.

India has proven more resilient and emerged from the pandemic relatively stronger than others, Banga said, adding that he is more optimistic than before as the country is focusing on growth and jobs, the two things crucial to reducing poverty.

Ajay Banga was appointed World Bank Chief last month.

“India’s opportunity currently is to cash in on the China+1 opportunity,” Banga said. “This opportunity will not stay open for 10 years. This is a three-to-five-year opportunity when the supply chains start relocating or… let’s say not relocating but adding on in another location.”

Banga said this was one of the topics of discussion with the Indian government.

China+1, a post-Covid development, refers to the establishment of manufacturing elsewhere to address supply chain disruption risks because of concentration in one country.

The one thing India has going for it is the “very high” percentage of gross domestic product (GDP) that comes from local production, Banga said.

“Your exposure to the typical impact of global slowdowns, caused by trade slowdown,… is cushioned by the relatively high percentage of the economy that comes from domestic consumption, which is very helpful at a time (like this),” he said.

India’s economy grew 7.2% in FY23 and the World Bank expects it to grow 6.3% in FY24.