As tech giants such as Apple, Amazon, and Samsung are shifting production from China amid the US-China tensions, India could end up becoming the next global technology hub, according to a report.
The report was released on Tuesday by the Asia-based Hinrich Foundation that works to promote sustainable global trade.
It says the friction between Washington and Beijing will only help India’s cause if the latter chooses to address longstanding roadblocks including government inefficiency and excessive regulations.
“Washington’s technology cold war with Beijing has resulted in strategic decoupling, prompting manufacturing supply chains to shift to new locations. India finds itself well-positioned to absorb these supply chains,” says the report.
One of the factors that will work in India’s favor is US President Joe Biden’s call for “China-free” supply chains in certain sectors, according to the report.
The Biden administration is expected to bring about a sharp policy change towards Beijing, which will focus on gathering allies to counter the Asian nation’s coercive diplomacy across the globe.
Just landed in India and spent a beautiful afternoon paying my respects to someone who truly changed the world. “Live as if you were to die tomorrow. Learn as if you were to live forever." – Mahatma Gandhi. pic.twitter.com/xDXAT9cBgf
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The US wants to ensure that China fails in gaining a permanent advantage in critical technologies and will look to partner with the likes of Taiwan, Japan, and South Korea.
India’s inclusion in the US-led Quadrilateral Security Dialogue (QUAD) along with Japan and Australia could also benefit the South Asian nation.
Earlier this month, the leaders of all four nations held their first summit to discuss China’s growing economic and military might. As per reports, India’s ties with the group members will act in its favor.
According to a Bloomberg report, tech giants like Apple, Amazon, and Samsung have relied heavily on China for their production. However, the companies are now shifting their production from China to India and Southeast Asia, a move that escalated tensions between Washington and Beijing.
Apple and Amazon see India as the prime location due to the country’s new productivity incentive programs, large labor base, and rapidly increasing domestic market for devices and internet services.
“Everybody that I talk to in the tech sector is moving stuff out of China, anything that they consider sensitive. India is also looking to reduce its own dependence on China,” Alex Capri, a Singapore-based researcher who wrote the report, was quoted by Bloomberg as saying.