India Wants to Be the Top Manufacturing Alternative to China

( – India is pushing to become the top manufacturer in Asia as an alternative to China. However, India has to duke it out with Vietnam in order to get that spot.

The Biden administration has encouraged companies to move manufacturing out of China and into more friendly countries like Vietnam and India due to the increased tensions and competition with China. The administration feels that there is a huge risk to having U.S. companies manufacturing in China due to the circumstances, and they have been opening conversations with CEO’s for a de-risking strategy.

India and Vietnam both are top contenders due to their low labor costs, but Vietnam is currently in the top when comparing export amounts.

The CEO of India Index, Samir Kapadia, stated “Vietnam has been known for their ability to manufacture electronics. India is just getting into that game, so that provides Vietnam with a competitive advantage.”

India has been inserting themselves into the United States export world especially since the Prime Minister’s visit to the White House, but the United States has had a trade and investment deal with Vietnam for years now.

Vietnam has an advantage when you consider the simplicity compared to India where they have almost thirty states and each policy might be different. In comparison, India also has higher import taxes than Vietnam.

Following this, many U.S. tech giants are moving their manufacturing to other parts of the world and pulling them from China. Apple will begin sourcing batteries from India and Google is expected to start production of their new phone in India as well.

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