Logistics is a joke in India. It takes 3 days to unload/load a container ship in Mumbai. I have "lost" containers put on a train in New Delhi which somehow are missing when the train arrives in Mumbai. Yes, containers disappear from trains.

The Mumbai High Court has ruled that proven theft (proven in court) is not sufficient grounds for firing a worker. To close a company/factory with more than 90 workers requires government permission, which has till date, never been given.

India manufactures what China, for a variety of reasons, chooses NOT to manufacture: too labor intensive, too short production runs, primarily for the domestic Indian market where there are tariffs protecting the Indian manufacturer.

The real cost of Indian labor is 2-3 times the cost of China labor when you take into account productivity, Indian workers need for excessive/extensive supervision, and the costs of benefits. This is why Chinese construction companies choose to import Chinese labor to India, for projects they are working on in India, and why, till very recently, there were 40,000+ Chinese workers in India doing construction.

I am fully aware of the problems of sourcing in China. Nevertheless, India's costs and logistics make it the second choice for any product currently available in China.

With the poor response to call centers in India by American consumers/customers, I also expect China to shortly (as English in China becomes more widespread) become the destination of choice for out-sourcing.

Similarly with software development.

I have been waiting for 20 years for India to actualize its potential. It has not, and I believe it will not. China has, and will continue to grow market share from both developed, and other so-called undeveloped countries.

If you look at what India is currently manufacturing, and who are the customers (most domestic), and compare this to what China is manufacturing, a truer picture of where you should source emerges.

Walmart is not stupid. They only started sourcing in India, so that they could get permission to open stores in India, which has still not occurred. Nor have their own targets been achieved. There is not much worth buying, in comparison to China.

Yes we understand the problem we have. In India, things are SLOW and STEADY. We move slowly but firm movements. India is a democracy. Govt cannot enforce rules. Your Obama, if you are American, can enforce that Health bill, though he firmly believes it is good for you and other fellow Americans. Chinese, if they had such bills, they would have enforced long back. That is the communist and democratic regimes work.

For Chinese, this is the third expeirment with their people. First was Mao's GREAT LEAP. Millions died; then came GANG OF FOUR'S "cultural revolutions". The current Deng Xiaopeng's policy.

Also, relying heavily on an economy which is SUPERHEATED, whose currency is state supported, is wise or not ...only en expert LIKE YOU can answer.

Now all above reasons are not more valid.
- There are no more quota issues
- China very much matured and is very well capable of producing complicated designs
- Shorter productions runs are also possible in China now.
- The advantage of eventual lower import duties are not really that high.

What makes India also not worthwhile (For me) :
- Very bad infrastructure, poor logistics. Not uncommon to see brand new producing compounds, but no roads. Very long time between ex factory and loaded FOB.
- Impossible to arrange an entry visa on arrival. Visa can only be issued at the home country of the appliant. Meaning, I have to fly from China to Holland. Get the visa, then fly to India and after the job back to China. Impossible situation. Moreover they refuse to give visa valid for more than 6 months. Even if I show them I already go to India for years. Already happened that productions went wrong, but I could not go because of the visa rules.

So I source from China and other countries in Asia, but not from India anymore.

Please, answer.

Warmest regards

Daniel