According to the this article in the Washington Post all is not well in off-shored manufacturing:
Mattel Recalls More Chinese-Made Toys
Lead-Based Paint, Design Flaws Prompt Second Action in Two Weeks
From what I’ve seen in Hyderabad, this could well be where India is headed. India doesn’t do as much manufacturing as China (other than, I think, textile products) and is more a services provider (if you consider what you get from a Bangalore “Help” Desk to be a service).
But I’ll bet there are similar issues of graft, corruption, and (shall we say?) quality of work, that could come back to bite the American companies that have sent your credit card, bank account, and cell-phone information to their Indian operations.