Amid a global shift away from China, India is positioning itself as a top manufacturing destination in Asia. However, the country needs to address certain challenges like high taxes and supply chain inefficiencies to surpass Vietnam and attract foreign investment.

To diversify its supply chain away from China, the US is increasingly focusing on countries like India and Vietnam. India offers low labor costs and a warming relationship with the US. However, its complex regulatory landscape with 29 states having different policies, poses challenges compared to Vietnam’s streamlined processes.  

Vietnam also leads in exports due to its established electronics manufacturing prowess. 

Although US tech giants like Apple and Google are expanding operations in India, import duties on information and communication technologies hinder India's competitiveness. Prime Minister Modi's government aims to gradually reduce tariffs to attract foreign investment, particularly in electronics manufacturing.

Despite India's ambitions to become a developed economy by 2047, infrastructure shortcomings, including lengthy shipment delays, remain a concern. The government has allocated significant funds to modernize logistics systems, emphasising the importance of improving transportation networks.

While Vietnam enjoys a close relationship with China, India's potential lies in its strategic advantage as a non-China alternative for supply chain resilience. 

However, India must demonstrate its ability to compete effectively in electronics manufacturing to sway global corporations from Vietnam.