Economy
Abril 9, 2021 - < 1 min

India and the technology war between the U.S. and China

New Global Trends

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Can India become America's technology partner in this new era of technological confrontation with China? An analysis by the Hinrich Foundation, an institution specializing in the analysis of world and Asian free trade, concludes that India has a great opportunity to do so. With favorable economic incentives and immense technological potential - India has the most engineering-focused education system in the world, according to the analysis - the country has already attracted giants such as Apple, Samsung or Amazon, which have captivated their suppliers and are consolidating world-class technology manufacturing clusters in different Indian cities, with global suppliers such as Foxconn or Wistron, and local ones, such as Dixon or Micromax. The next step would be to attract motherboard and semiconductor manufacturers. India is also part of the Quadrilateral Security Dialogue, known as QUAD, an alliance promoted by President Biden - and which also includes Japan and Australia - to contain China and reinforce the role of strategic ally of the US in this new stage of US-China relations. However, Hinrich points out that in order to consolidate its position as a new partner in the US technology supply chain, India must make further reforms to facilitate business in the country, simplifying its regulatory system and improving relations between state governments and the central government.

BONUS TRACK: InMobi, a mobile contextual advertising company with operations in the U.S., China, South Korea, Australia and India would this year become the first Indian startup to conduct an IPO on a U.S. exchange. Press reports indicate that InMobi is looking to raise between US$12 billion and US$15 billion in its IPO.