The past four weeks have provided evidence from India and Indonesia to Vietnam and Bangladesh that the race to supplement China’s role as the world’s factory has quickened dramatically. A recent Goldman Sachs survey found that for companies contemplating diversifying, Vietnam followed by India top the list as potential secondary production bases (see graphic). It also created a productivity linked incentive scheme to draw mobile phone and component manufacturers to India. Same old storyMuddled logic also underpins the pledge to build a self-reliant India and India’s trade policy in general. The challenge for India is that its competitors paradoxically have both the purposefulness of the tortoise and the speed of a hare.

Source: Mint October 19, 2020 15:33 UTC