Is India next for the contract manufacturing industry?
It looks like the giant contract electronics manufacturer, Foxconn is planning to open several facilities in India. Gleeful experts from India hope this would spur a wave of other international companies to enter the ripe for the plucking Indian economy. There is also great hope Foxconn and others electronic contract manufacturers will help build the supply chain infrastructure necessary to ensure their success.
An eager, business-friendly government and the Indian consumption story, which had lost its sheen over the past three years, may finally attract wary manufacturers.Rising labour costs in China, which dominates manufacturing, and an eagerness to reduce dependence on that country are pushing manufacturers to new destinations. One such place could be India, which has a massive labour force, a large domestic consumer market and a government that has promised to promote manufacturing.
One thing is for sure, Foxconn’s massive plans for the country have made India’s electronic manufacturing sector infinity more interesting to watch.
Source: Live Mint