Non Paywalled: https://archive.is/Tro55
With most Chinese exporters cut off for now from U.S. consumers by high tariffs, companies are looking for alternative places to produce and export to the U.S.—adding up to a golden opportunity for India.
Why now? Why not WSJ say that tariffs will only speed up companies leaving China for lower costs. This shift had already been running ever since Modi came to power in 2014. Many companies must have already left China on grounds of competitive costs and wage levels are much lower in India in comparison to china.
And the dara verifies it.
The average cost of manufacturing labor per hour was $0.92 in India and $3.52 in China for 2014. Relatedly, the two countries’ GDPs per capita are vastly different: China’s stood at US $10,261.70 in 2019 compared to India’s US $2,099.60, according to The World Bank (who's clueless about India).
And yeah, China's FDI has been sluggish in the past decade while India's been making gains. And as percentage, it's even outpaced China in 2023.
I think the western media should now change its stance that the red tape in India does not allow ease for foreign investments. On the contrary India has departed from its history of restrictive policies on investment, licensing and production in the last decade.