The U.S. manufacturing sector currently faces two major challenges: persistently high labor costs and rising political resistance to immigration-based labor solutions. These structural issues have hindered domestic growth, despite available land and technology. Meanwhile, India has utilized innovative policy models such as the Micro, Small and Medium Enterprises (MSME) initiative and the Agnipath scheme for short-term defense recruitment to create jobs, promote entrepreneurship, and deliver cost-effective products and manufacturing options. This paper examines how these Indian approaches can be adapted for the U.S. manufacturing industry to develop a cost-efficient, locally driven, and semi-automated production system that does not rely on permanent immigration.

We suggest a hybrid policy approach that involves deploying rotational, contract-based Indian skilled labor via India’s National Skill Development Corporation (NSDC) to U.S.-based MSME style, manufacturing units. A case study on Nike sports shoe production illustrates this feasibility: a decentralized production system staffed by Indian workers for 4 to 5 years tenure could significantly lower costs. This strategy not only aims to reduce the unit production cost to $25–$30 per pair, compared to $100 ex-import, but also helps strengthen bilateral strategic relations. The model seeks to empower local entrepreneurs, decrease U.S. reliance on Chinese imports, and establish a new framework for cross-border workforce collaboration.