According to report in CNBC, Former Australian Prime Minister Kevin Rudd said Sunday that India, Southeast Asia, and Mexico are top contenders for businesses looking to diversify into new markets, especially given the geopolitical risks surrounding China.

“When I look around the world, I see three sets, three zones of activity that are currently benefiting from what we can call “the great diversification” or “the early decoupling debate,” he said at the Asia-Pacific Conference of German Business in Singapore.

“The first is Southeast Asia, where we are right now, and the second is India… And, certainly, from a North American perspective, it is Mexico, which clearly benefits from the Nafta-plus economic arrangements.”

Over the last year, India, in particular, has seen a pivotal shift in economic policies that could transform it into a new market.

“As someone who has dealt with India for the last 20 years, I became convinced for the first time that they are about to attempt a significant policy shift,” Rudd told the conference.

“If they can pull that off, India could become the next China in terms of a large scale consumer market as well as a dependable global factory,” he added.