The Electronics Industry Finds a ‘Passage to India’
A Long Winding Road
India is clearly evolving into another manufacturing powerhouse, but the main question is whether or not it will remain in China’s shadow. According to Research and Markets, India’s electronics market was estimated to be $11.5 billion in 2004. The market is expected to grow at a CAGR of 23% by 2010, reaching $40 billion. By way of comparison, China’s electronics market was worth $ 272 billion in 2004. “China’s market is expected to grow at a CAGR of 19% over the next five years, contributing a major share to the world market, 30%, by 2010. While China will be a significant market in electronics manufacturing in terms of market size, India is an important market with an expected growth rate that is higher than that of China,” stated Research and Markets in a report. With India expected to pass China as the world’s most populous nation by 2035, the two nations remain fertile environments for low-cost labor. If India can continue to attract foreign investment and also consume the products it produces, it won’t have to worry about Chinese competition; it will generate enough jobs to become one of the world’s strongest economies.