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Bloomberg reported earlier this month that the Indian government will encounter global resistance by developing 460000 hectares of land to attract companies seeking to move manufacturing from China. The supply chain is unlikely to shift from China on a large scale, simply because China is the world's factory, and no country has a dense supply chain from clothing to smartphones to suitcases. In addition, the (large) domestic market of the world's second-largest economy has been one of the main factors for global companies to invest for some time.
In spite of many concerns about China's over reliance, it is likely to prompt companies to increase inventories to ease supply disruptions or move some supplies closer to the local market rather than shift production lines aggressively. China, with its huge domestic market, middle-income, high productivity and first world infrastructure, dwarfs India.
At the same time, India's missed opportunities in the past decade or two and its "own Wulong" behavior will severely constrain modi's government's attempts to attract factories from China. First, the Indian government "misdiagnosed" China's competitive advantage. Land and flexible labor laws are crucial, but in terms of attracting businesses, they are only part of the many advantages. Infrastructure, a business friendly environment and a tariff system are at least as important, and India is lacking in all of them.

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