Well Marc, it is a very fascinating editorial. First: you are right, people from US and Europe maybe could change their mindset and think about India in a different perspective, not limited to "service center" for savings, but as region for a new leadership in manufacturing. Second: "media consumption is booming" is giving me and additional bell. Vodafone, one of the biggest mobile operator in the world, has sold the branch in French and enforced its leadership in India. Was a randomic step or was a perfect strategy?
Marc, I think this is a good article and I somewhat agree with you... but India is indeed "complicated."
Sure, China is complicated as well, but in different ways.
There are very valid reasons why India is way behind China, I mean, if India really did offer a similar manufacturing environment, just with more open government... don't you think there'd be a line of people queued up to invest there?
There is a long list of reasons why China has attracted far more manufacturing investment than India. Cost, quality, and availability of labor, is a big factor, but I think one of the biggest factors is infrastructure: China obviously has a far more advanced infrastructure in place, India lags far behind in many areas when it comes to basics such as ports, roads, and even access to reliable electricity.
Let me spin this another way: China already has an advanced high-speed rail system and will no doubt expand greatly upon it this decade. India has... well, much more basic issues to tackle before you see bullet trains careening all over the place.
The United States and Europe both have a habit of giving labels and status to other nations to help with their personal agenda, be it capitalism or colonialism. India is tagged as a service center because that is the status these two want India to fufil, and China as a manufacturing center, regardless of what the actual facts are.
Wether the West likes it or not, India is proving to be a force to reckon with and regardless of what designation India is accorded, they will continue to be an evolving new ecomony. Considering the high educational level in India its role in the electronics industry will continue to increase and become competitive in 10, or 15 years.
Yes India is an elephant ! Slow and sluggish. But it is mighty and has huge potential. Its lack of speed may have caused it to lose on Electronics Manufacturing, where speed is utmost important - to keep moving with the fast changing technology- the agility required that China has acquired
India has succeeded well in other manufacturing sectors such as consumer goods, automobiles, fertilisers, clothing etc. which are not so fast paced as Electronics manufacturing.
I know alot happens in china. Electronics design which might cost 50% of what it costs in USA. China has the cheapest manufacturing which will ship the products across the world. WHat India has is a government which has too many poltical problems to worry about than to think about electronic manudacturing. The things are defnitely changing but at a slow pace. I think there would be lot more happenings in India in the next 5 years. What it requires is local start ups and local product companies.
While the situation today provides for China having more opportunity in the Electronics business, this may change down the road if India decides it wants to move into the market. How long will China be able to supply cheep labor to the outside world while maintaining horrid conditions for its workers. How long will the western world accept such a model? China has come under fire for its practices and as well as its censorship. India is indeed far behind, but if they decide to invest in their infrastructure, they could become a formidable alternative to China. It's easier to invest in the infrastructure than to change the views of limiting freedom of speech.
Infrastructure is the key.And the moment India fixes that critical issue,India will be well on its way to rubbing head and shoulders with China in the issue of Electronic Manufacturing.
@Anna, as much as i would want India to become an manufacturing hub i am bit skeptical. The ground situation is not conducive for the electronic manufacturing until government is really serious to take on China.
I totally agree with you. The current UPA Government is not at all serious about taking on china. Instead it is busy in implementing populist measures like NREGA which is spiralling up the inflation in India. I am not sure when will things change in India. We need someone like Narayan Murthy to lead the electronics industry growth so that we can mimic the IT success story.
The change is here already! Toshiba's manufacturing move into India is the begining of change. It always takes one and the others will follow especially in light of the technical level in India and the freedom in its governance.
I wonder if the government in India is looking to improve conditions in the country and add the needed infrastructure so they can be the "next China". Do they see this as an opportunity they would like to pursue?
The Govt.is trying its best.Just that there are too many roadblocks(within and outside the Govt).
For instance most people are still not convinced that real Estate/Infra is the best use of available land (as India has a rapidly growing population which needs to be fed richer and richer diets)-This is one example of the conrumdrum facing Indian policymakers every single day.
India always wants to compete with China, be it in infrastructure space, military space or for that matter any field. Only thing that is lacking in Indian's politician is discipline. Most of the politicians are corrupt, and you harldy find politician who is serious about economic growth. I believe it will take another 5 years for things to change.
Well, it seems to me that the whole world would be a much better place to live if politicians weren't corrupt or if they weren't out to serve their own agenda. I've witnessed a lot of arguing, politicking, and posturing over the past couple of weeks with regards to the US debt ceiling. I had to stop watching.
I wonder what we the people (globally) can do about it. When it is severe enough, there is people uprising (like in Egypt) and if the people are lucky, they can actually make some changes. Hopefully India will do just that.
Electronics manufacturing in China has got a very good development as a result of low cost in production, but this will receive challenge from India with close environment of a prodcution factor namely cheap man power cost. One important advantage that India has in electronics manufacturing is that the present electronic develops towards integrated solution gradually that require software engineers for such integration, and we all know about software development in India, this will play a good role in India electronic manufacturing.
Its good in some sense that India and China are not fighting for the same space. Both have their strength and problems. Rather than trying to occupy each other's space they should first strenghten their respective position in Software and manufacturing. Right now the trend is that products are modelled in Silicon Valley or in Europe, they are manufactured in China and assembled and finalized in India. I do not think that this trend is going to change in coming 5 years.
"Meanwhile, in India, media consumption is booming -- even print titles are doing great -- and Twitter is legal"
Marc,
Thanks for the post.I totally agree with you that media consumption is booming. One of the major reasons for this is, media is playing very active role in highlighting the corruption, non-governance issues. Infact recent massive corruption scams like 2G and CWG came into lime light because media continuously highlighted those issues and thus put pressure on government to act.
I have always considered India to be the next big Asian giant after China. India has everything that can take it to become a leader in manufacturing. However, I think the Indian government needs to work on ensuring political stability and creating conditions which are smooth for businesses. The recent attacks in Mumbai are an example of incidents which can discourage investors' faith. Once the government is successful in being able to create peace and law and order within the region, growth and development will come itself.
Currently India has enough technical brain to go ahead china, only india lags the manufacturing units. Coming to consumer electronics there is a huge increase which will showcase the future.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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