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Apple boosts India's factory hopes - but a US-China deal could derail plans

The US-China trade "reset" could stall the manufacturing investment coming into India, say experts.

Nomura, a Japanese broking house, also pointed to growing "anecdotal evidence" of India emerging as a winner from "trade diversion and supply-chain shift in low and mid-tech manufacturing" particularly in sectors like electronics, textiles and toys. Apart from the fact that China is now back in the running, companies are also "not entirely writing off other Asian competitors, with countries like Vietnam still on their radars", economists Sonal Verma and Aurodeep Nandi from Nomura said in a note earlier this month. Quite unlike companies like Nokia which set up a factory in the southern city of Chennai in 2007 where suppliers moved in together, "today's smartphone makers mostly import parts and push for lower tariffs instead of building supply chains in India", explained Mr Srivastava.

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