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Businesses are pivoting away from China — but few wind up in India

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Red tape, restrictive import policies and unpredictable regulations have prevented global companies from committing to India, executives and officials say.

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A blacksmith works with Indian-made steel at a factory in a suburb of Bangalore, India, in February. (Aijaz Rahi/AP)

By Karishma Mehrotra

NEW DELHI — When companies began shifting their global supply chains away from China, India declared it was ready to become the world’s factory. But the moment hasn’t arrived.

A decade ago, India positioned itself as the prime destination for companies looking to diversify their manufacturing base, known as the China Plus One strategy. Now it is grappling with a sobering reality: Smaller countries like Vietnam have been much more successful at attracting foreign investment.

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