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China-U.S. Tensions Can Boost India’s Tech Dreams, Report Says

  • New Delhi can absorb supply chains, Hinrich Foundation says
  • South Asian nation needs to overcome a range of challenges
Joe Biden, top left, Yoshihide Sug, top right, Scott Morrison, bottom left, and Narendra Modi, during the virtual Quadrilateral Security Dialogue (Quad) meeting on March 12.
Joe Biden, top left, Yoshihide Sug, top right, Scott Morrison, bottom left, and Narendra Modi, during the virtual Quadrilateral Security Dialogue (Quad) meeting on March 12.Photographer: Kiyoshi Ota/Bloomberg

Friction between the U.S. and China could give India the boost it needs to become a global tech hub, as long as the South Asian nation addresses longstanding roadblocks including excessive red tape and government inefficiency.

“Washington’s technology cold war with Beijing has resulted in strategic decoupling, prompting manufacturing supply chains to shift to new locations,” according to a report released Tuesday from the Asia-based Hinrich Foundation set up by U.S. entrepreneur Merle Hinrich. “India finds itself well positioned to absorb these supply chains.”

A number of factors are working in India’s favor right now, according to the foundation, which cited U.S. President Joe Biden’s call for “China-free” supply chains in certain sectors, as well as India’s membership in the Quad grouping with the U.S., Australia and Japan.

Leaders from those four nations held their first summit earlier this month, partly to address concerns about Beijing’s growing economic and military heft. India and China engaged in violent clashes along their disputed Himalayan border in 2020, though efforts to cool tensions this year led to both armies pulling back troops in February.