India may be positioned to benefit from growing trade tensions between the United States and China, as American companies look to diversify their supply chains, according to a report by The Wall Street Journal.
Zetwerk, a Bangalore-based manufacturing network, has expanded rapidly since the U.S. imposed tariffs on Chinese goods in 2018. The company now connects more than 10,000 Indian suppliers and recently opened its seventh electronics facility.
India’s advantage lies in lower tariffs, with most goods facing a 10% rate compared to China’s 145%. Apple has increased iPhone production in India, and Foxconn is adding a large smartphone plant in Karnataka. U.S.-based Corning is also launching operations in Tamil Nadu.
Despite these gains, challenges remain. Businesses cite inconsistent regulations, tax disputes and infrastructure issues as major hurdles. Indian officials say they aim to build full supply chains domestically and attract more Western investment.
Experts say India has a limited window to act, with no national elections expected for a year. “It should be thinking about what the world can do for it,” said Tanvi Madan of the Brookings Institution.