BANGALORE, India India's electronics market, valued at $11.50 billion in 2004, will be the fastest-growing electronics market the next few years, according to market research firm In-Stat (Scottsdale, Arizona).
The firm projects the Indian market to grow at a compounded annual growth rate of 23 percent to reach $40 billion in value by 2010.
India's electronics market still lags far behind China, valued at $271 billion in 2004, but bears watching. Low manufacturing costs, availability of skilled workers, engineering skills and raw materials, and the growing domestic market are considered market drivers.
"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 tariffs," says Bryan Wang, In-Stat analyst.
The firm said the Indian electronics industry is driven mostly by the computer and computer component sectors, thanks to a growing middle class with disposable income for consumer goods.
The study said key players in India are Flextronics, Jabil Circuits, TVS Electronics, Solectron Centum, LG Electronics, Samsung India, Celetronix India and Bharat Electronics Ltd, while emerging players include D-Link and WeP. Samtel and Tyco will likely be global players for exports.