How India is challenging China as Asia’s tech powerhouse

For years, China has been Asia’s technology powerhouse.

It is home to what once were some of the world’s most valuable companies, from Tencent to Alibaba. It is where most of the world’s iPhones and other electronics products are produced. And it is now a serious player in electric vehicles.

But a shift appears to be underway, with other countries in Asia trying to take China’s crown.

India is one of these contenders. New Delhi has sought to woo foreign tech companies and has been increasingly successful, with giants like Apple increasing their presence in the country.

India is looking to boost areas such as high-tech electronics and semiconductor manufacturing, as well as support its burgeoning yet challenged startup scene.

At the same time, foreign firms are looking to diversify away from China amid increasing tensions between Washington and Beijing. Tough Covid-19 restrictions enacted by the Chinese government, which disrupted operations for firms like Apple, highlighted the need for companies to reduce exposure to the country.

India could stand to benefit. What was once a market that foreign firms perceived as having too much red tape and too many business hurdles is now becoming a viable alternative to China. But it will take a lot of effort for India to wrest China’s tech title.

In the latest episode of CNBC Tech’s “Beyond the Valley” podcast — which you can listen to above — Tom Chitty and I discuss whether India can challenge China as Asia’s tech powerhouse, and what the country’s advantages and disadvantages are.

If you have any thoughts on this or previous episodes, please email us on beyondthevalley@cnbc.com.

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Here is a transcript of the episode of “Beyond the Valley” released on Apr. 3, 2024. It has been edited for clarity.

Tom Chitty: For years China has been Asia’s tech powerhouse where the world’s electronics and some of the biggest companies on the planet are located. But as China’s economy continues to struggle and trade tensions between Washington and Beijing show no signs of easing, many global tech firms are looking closely at India. The country is set to become the world’s third-largest economy by 2030. And part of that plan is making a play to bring in high tech manufacturing to its shores, from Apple’s iPhones to semiconductors, as it sets itself up to challenge China as the key tech hub in Asia. How’s your…