Apart from geographical advantages, Vietnam has also emerged as one of the major benefactors of the China Plus One strategy because of its 20 per cent corporate tax rate and its export-oriented economic growth model. India, on the other hand, in the Union Budget 2024 slashed its corporate tax rate for foreign companies to 35 percent from the erstwhile 40 percent in an attempt to attract more investments.
Sitharaman noted that one example of India’s success with the China Plus One policy has been in the smartphone manufacturing area. India’s phone assembling and manufacturing industry has seen large investments from global industry giants such as Apple and Samsung, owing to the push provided through the Modi government’s flagship Production-linked Incentive Scheme.