Investors and businesses are asking whether the trade war between US and China will benefit India, and whether Modi’s government close the competitiveness gap between India and China. Vindran Vengadasalam shares his views following his recent visit to India, summarised below.
With Modi’s landslide victory in India’s recent election, the reforms he started should continue to improve the country’s manufacturing competitiveness. The key initiatives to kick-start manufacturing include The ‘Make in India’ and ‘National Manufacturing Policy (NMP), ‘Skilled India’ and ‘Digital India’.
Factors to consider when looking at India vs China’s attractiveness for global manufacturing include:
1. Labour productivity & costs
2. Production costs
3. English language skills & business culture
4. Environment and market expertise
5. Industry strengths in India vs China
See the full article on Accru Asia China vs India for manufacturing.