The electronics market in India, at $11.5 billion in 2004, will be the fastest-growing electronics market worldwide over the next several years, reports In-Stat (http://www.in-stat.com). This 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. 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 under way, and a restructured government tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariff,” said Bryan Wang, In-Stat analyst.