Ravi Ramamurti, who teaches international business and strategy at Boston’s Northeastern University, thinks that emerging economies can compete with China in “simpler” industries such as footwear, textiles or low-technology consumer products. He says companies shifting production from China to India are probably betting that India’s growth will pick up once the new government which comes to power after general elections due by May puts economic reforms on the fast track. “With growth slowing in India, the pull of the domestic market is weakening,” he says. “It is a pity that India is not taking greater advantage of China’s declining competitiveness.”

Business Today