# West Must Invest in India to Counter China, Lowy Report Says

2026-08-07T02:00:25+00:00 | World & Diplomacy | Indian Opinion Desk

Corroboration: 1 independent outlet

Western governments must match their strategic support for India with investment, a Lowy Institute article argues. The report says capital has flowed into China for three decades, helping create a strategic rival, while India has not yet become an industrial alternative at scale. Companies are being urged to adopt a “China plus one” strategy, but China still offers stronger infrastructure, including power and ports. Written by Stephanie Campbell, the article says India is the only country large enough to provide an industrial alternative on a continental scale. It argues that governments must change investment conditions rather than leave firms to absorb the cost. Australia could support India through critical minerals, energy and defence cooperation, the report says.

## Coverage

- thehansindia.com <https://www.thehansindia.com/news/international/west-must-take-india-more-seriously-in-role-to-balance-china-report-1103486>

Tags: Australia, China, India, manufacturing, Western investment
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