Skip to main content

China’s threat to Indian manufacturing

India has made impressive progress in raising its share of global high-end electronics exports over the past few years. But, worryingly, it has failed to capture any additional market share in the lower-end manufactured goods which are typically more labour-intensive. Part of the problem is that Chinese firms have become more productive by making these goods more capital intensive, which has made it harder for Indian firms to compete. This highlights the need for the next government to step up the pace of structural reform.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access