Is South Asia the Next Business Hot Spot ?

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A growing number of Asian businesses are rethinking their global trade strategies in response to shifting geopolitics and mounting trade uncertainties. According to HSBC’s 2025 survey, more than one in three Asian firms are actively looking to boost trade with South Asia (38%) and Europe (36%), while over one in four (28%) plan to reduce trade with North America.

The poll, which surveyed over 2,750 international companies across seven Asian markets, reveals that 83% of firms are reassessing their long-term business models due to recent trade policy changes. Meanwhile, 81% say ongoing uncertainty has made them more cautious about expanding operations or making new investments.

With global supply chains still under strain, Asian firms expect an average revenue hit of 18% tied to logistics delays. Rising costs — driven by tariffs and shifting trade routes — are also a top concern. Over half (51%) of the businesses surveyed said they are already seeing cost increases, with 34% having adjusted prices and another 51% planning to follow suit.

Despite the caution, strategic moves are underway. Over the next two years, 52% of firms are considering shifting or expanding production in China. Interest in South Asia is also on the rise (39%), with Europe (35%), the US (29%), and the Middle East (28%) also on the radar.

“Against a backdrop of trade uncertainty, many companies have taken a pause on capital expenditure,” said Aditya Gahlaut, HSBC’s regional head of Global Trade Solutions, Asia. “But one thing remains constant — wherever trade flows, investment follows.”

The findings highlight a shifting center of gravity in global trade, with Asia looking inward and toward friendlier markets for future growth.