Bringing Indian businesses back from China

Indian Prime Minister Narendra Modi wants the country's companies to embrace their homeland as a manufacturing base. It's a hard sell for businesspeople like Himanshu Baid.

Baid can still make more money in China even though he pays his workers three times more than at his two factories in India, which supply the domestic market. Congestion at ports, a lack of skilled workers and a shortage of raw materials offset any advantage India has with cheaper labor costs, he said.

"It was a risk for a small company like ours, but it worked as China is an easy place for business," said Baid, head of Poly Medicure Ltd, a New Delhi-based company with an annual sales of $53 million. "It's a struggle in India."