In the United States I see significant quantities of manufactured good imports made in Taiwan, Japan, China and Korea. However, there seem to be relatively few imports from India. Why is this? Solution India has significantly worse physical/logistics infrastructure than China, Japan, Korea and Taiwan, so it is difficult to produce goods in India because it\'s difficult to move supplies and product around the country. This, coupled with the comparatively higher complexity of dealing with government bureaucracy, makes it challenging to manufacture products in India for export. Here is the World Bank\'s 2014 Logistics Performance Index for the countries, which illustrates the significant competitive disadvantage India has compared to China and others. India still has a low-cost workforce, so they do export items where cost is very important (e.g. clothing, sneakers). More importantly, India exports services (call centers, software offshoring) because it\'s much easier to lay down fiber optic cable than to build a railroad so certain cities (Hyderabad, Mumbai, Bangalore) have developed strong export services industries which do not need to depend on a lot of outside physical infrastructure to create viable exports..

1. In the United States I see significant quantities of manufactured good imports made in Taiwan,
Japan, China and Korea. However, there seem to be relatively few imports from India. Why is
this?
Solution
India has significantly worse physical/logistics infrastructure than China, Japan, Korea and
Taiwan, so it is difficult to produce goods in India because it's difficult to move supplies and
product around the country. This, coupled with the comparatively higher complexity of dealing
with government bureaucracy, makes it challenging to manufacture products in India for export.
Here is the World Bank's 2014 Logistics Performance Index for the countries, which illustrates
the significant competitive disadvantage India has compared to China and others.
India still has a low-cost workforce, so they do export items where cost is very important (e.g.
clothing, sneakers). More importantly, India exports services (call centers, software offshoring)
because it's much easier to lay down fiber optic cable than to build a railroad so certain cities
(Hyderabad, Mumbai, Bangalore) have developed strong export services industries which do not
need to depend on a lot of outside physical infrastructure to create viable exports.