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The electronics market in India, valued at U.S. $ 11.5 billion in 2004, will be the fastest-growing electronics market worldwide over the next several years, reports In-Stat.
The market research firm estimates that the Indian electronics market is expected to grow at a Compound Annual Growth Rate (CAGR) of 23 percent by 2010 to reach $ 40 billion. Though its total output will be far behind China's electronics market, worth $271.97 billion in 2004, India's promising market bears watching, In-Stat says. India's low manufacturing costs in skilled labor and raw materials, availability of engineering skills, and opportunity to meet demand in the populous Indian market, are driving its electronics market.
"Major challenges facing the Indian electronic manufacturing market are an infrastructure that needs to be improved at the earliest possibility, easing of foreign investment procedures, which is underway, and a restructured government tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariff," stated Bryan Wang, In-Stat analyst.
The research firm also found the following:
The Indian electronics industry is driven mainly by the computer and computer component sectors.
About 25 percent of the Indian population lives below the poverty line, but a large and growing middle class of 320 million to 340 million has disposable income for consumer goods.
The main challenge for China's electronics industry is to keep up with technology trends.
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