Walmart is increasing its reliance on India and reducing its reliance on China to cut costs and diversify its supply chain.

Between January and August, 25% of Walmart’s U.S. imports were transported from India, down from 2% in 2018.

However, 60% of its shipments originated from China, down from 80% in 2018.

Walmart’s sourcing senior vice president, Andrea Albright, emphasized the importance of resilient supply chains and said India is crucial to its manufacturing capacity building.

The company pledged to import $10 billion from India annually by 2027.