Indian Manufacturing

India won’t be a great place to manufacture and Apple flirting with the idea seems interesting but likely won’t pan out. The problem is energy costs. India does not produce any major energy. It will not have the capacity to bring energy cheaply enough to be able to do so significantly enough. Second, transport. If energy is expensive then transporting becomes expensive as well. If my my thesis about Russia not being a major producer anymore because of the exit of western technology is true then oil prices will rise a lot in the next few years. Transporting anything long distance becomes less interesting and Mexico looks more and more like a good option for United States manufacturing. India may develop its own local manufacturing but will not get the western capital it needs to support global manufacturing. Not that it needs to as there are enough people in India for India to just focus on its own population.


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