China shouldn't get too complacent about its commanding role as the world's low-cost center of manufacturing. A new survey by Capgemini and ProLogis suggests that India could challenge China's dominance in that sector within the next three to five years. Up to now, a lack of manufacturing and supply chain infrastructure has prevented India from posing a substantial challenge to China. Some 43 percent of companies that offshored manufacturing to India have yet to achieve their initial objectives. But respondents to the Capgemini survey said some of China's main manufacturing centers are becoming too expensive when compared with other countries in the region. That creates an opening for alternative sources of product. "If the Indian Government can provide the right investments in infrastructure for manufacturing and supply chain operations, it will soon become the destination of choice for manufacturing worldwide," said Roy Lenders, Capgemini's vice president for consulting services.
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