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China and India often are compared in the same breath by western executives weighing sites for expansion or outsourcing, but the reality of the situation is that in terms of infrastructure, China is decades ahead of India – an important consideration for industries reliant on strong power, water, transport or information infrastructure.

Like China, India is a large country and some sections are far more developed than others, so major destinations like Bangalore or Delhi need to be considered separately from some remote province in central India.  Also as in China, the massive population moving from very poor to somewhat poor is resulting in titanic shifts in demand for commodities vital to businesses, swamping the electrical grid and threatening the vital supply of freshwater.  Whether your business makes high-tech gadgets or bathroom slippers, infrastructure matters and a long-term consideration of what to expect is the first step in any outsourcing plan.  While the list of problems is extensive, however, an investor should keep in mind that India has just as many advantages.  There is no such thing as a free lunch, and businesses should be aware of both the advantages and pitfalls of investing in India.

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