# Southeast Asia beats India in China Plus One race, data show

*Higher capital efficiency in Vietnam and Malaysia outmatches India's cheaper wages as Indian exports fell to 22.3% of output in 2025.*

**Published:** September 21, 2026  
**By:** Mina Okoro  
**Section:** Analysis & Comparison — Cross-border  
**Format:** Asia Compare  
**Confidence:** medium  
**Source:** https://eastasiabrief.com/analysis/southeast-asia-beats-india-china-plus-one-race-data-339  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- India's incremental capital-output ratio stood at 4.61 in 2025 while Malaysia and Vietnam remained below 4.0
- India's exports of goods and services dropped from 24.0% of GDP in 2022 to 22.3% in 2025
- Corporate procurement reviews for 2027 cross-border capital allocations begin Oct. 15, 2026

![Technicians assemble circuit boards alongside robotic arms on an automated electronics assembly line. (AI-generated image)](https://eastasiabrief.com/media/2026-09-20-a3c722d05ff4.webp)
*Technicians assemble circuit boards alongside robotic arms on an automated electronics assembly line. (AI-generated image)*

Analyst Yash Kumar Singhal showed Sept. 20, 2026, that Southeast Asian economies outpaced India in capturing foreign manufacturing investment under corporate China Plus One diversification.

Foreign direct investment into India fell between 2020 and 2025 in absolute value and as a share of gross domestic product. In contrast, inbound capital climbed steadily in Vietnam and Thailand over the same period.

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Cite as: East Asia Brief, "Southeast Asia beats India in China Plus One race, data show," September 21, 2026. https://eastasiabrief.com/analysis/southeast-asia-beats-india-china-plus-one-race-data-339