More OEMs to build in India
By Staff -- Purchasing, 12/28/2006
The number of electronics companies that will manufacture in India will rise 63% over the next two years, according to a new survey by researcher Technology Forecasters.
The researcher did a web survey of more than 400 electronics industry managers. The survey also found that the number of companies that will sell products in India will grow 24% during the next two years.Most OEMs and EMS providers are attracted to India by the potential for serving the local market, which differs from the typical manufacturing strategy in China, according to Technology Forecasters. Household income in India is rising which is making it attractive to OEMs and their EMS providers.Bruce Rayner, vice president of research for Technology Forecasters, says significant consumer electronics spending occurs when household income reaches about $4,500 per year. The number of Indian households earning $4,500 a year or more today is about 18 million, or slightly less than 100 million people. “Over the next five years, that figure is expected to double, with dramatic consequences for the consumption of electronic goods, including cell phones, televisions and refrigerators," says Rayner.Talkback
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