India wants to top China as the biggest factory in Asia instead of China. India has to compete with Vietnam, though, to get that spot.
China is becoming a bigger problem, so the Biden government has pushed companies to move their factories out of China and into countries that are friendlier, like Vietnam and India. Because of the situation, the government thinks that it is very risky for U.S. companies to be manufacturing in China, and they have been talking to CEOs about ways to lower the risk.
Due to their low labor costs, India and Vietnam are both strong candidates. However, Vietnam is currently ahead when it comes to export amounts.
Samir Kapadia, CEO of India Index, said, “Vietnam has been known for its ability to make electronics.” India is still new to that game, which gives Vietnam an edge over its competitors.
The United States has had a trade and business deal with Vietnam for years, but India has been getting more involved in US exports since the Prime Minister’s trip to the White House.
If you compare Vietnam to India, where there are almost thirty states and each may have its own rules, Vietnam is easier to understand. India, on the other hand, has bigger taxes on imports than Vietnam.
Because of this, a lot of big U.S. tech companies are moving their factories out of China and to other places around the world. Apple will start getting batteries from India, and Google is also likely to start making their new phone there.
