Fortune India
Two Asian giants are competing for factory dominance—but the race is closer than you think.
China remains the world’s factory floor, but India is rising fast with bold reforms and competitive labour costs.
China accounts for 28% of global manufacturing output, backed by decades of infrastructure and supply chain supremacy.
India leverages younger demographics, English fluency, and Western trust to attract "China+1" diversification.
Global companies, like Apple and Tesla, are looking to expand their Indian operations as geopolitical tensions push firms to reduce their China reliance.
Indian factory wages average $2.50/hour—half of China’s—but productivity gaps persist.
China’s ports, roads, and power grids outclass India’s, where logistics costs remain 14% of GDP vs. China’s 8%.
India’s PLI schemes are a gamechanger, luring manufacturers while China is fighting slowing growth with high-tech upgrades.
China leads in semiconductors and EVs; India aims to dominate smartphones, drones, and renewable tech.
China still leads, but India’s growth rate—6.3% manufacturing expansion in 2023 vs. China’s 4.8%—hints at shifting momentum.
This isn’t a sprint—it’s a marathon where scale, innovation, and geopolitics will decide the ultimate winner.