Dell's said to be joining Google in fleeing China in search of a "safer environment with [a]climate conducive to enterprise", potentially taking the $US25 billion it spends on equipment and parts in China to India.
The Indian Prime Minister, Manmohan Singh, was quoted in the Hindustan Times as saying he'd just met with Dell's chairman, who would like to move all of their set-up to a country "with security of legal system". They've currently got one factory in India already.
Chairman Michael Dell has previously stated that the "Indian operations are doing well...India is a great place to be in. It is growing faster than China for us." [Hindustan Times via Silicon India via Engadget]