India will struggle to emerge as global IT exports hub

Significance

To these ends, the government is trying to leverage the large domestic market to attract investment in manufacturing facilities with a view to establishing India as an export-oriented global manufacturing hub.

Impacts

• India’s high-tech manufacturing base, including in semiconductors, will expand but primarily domestically.
• Delhi will not join the Regional Comprehensive Economic Partnership in the near future.
• India will face stiff competition from South-east Asian countries such as Vietnam in wooing manufacturing away from China.