India’s Rise to Further Shift Global Electronics Supply Chain
India presents a very interesting opportunity for the semiconductor and electronics industry: it is the most recent Cinderella Story among the emerging market economies, benefitting from global economic shifts — low oil and strong dollar, especially, are enhancing the strong and sustainable growth plan of Prime Minister Narendra Modi.
As discussed in a recent EPS article, foreign exchange (forex) rates and low oil prices present both economic opportunities and challenges from consumer through manufacturing points globally. For India, the opportunities outweigh the challenges as we see by the significant investment occurring in the manufacturing sector, particularly favoring electronics, telecommunications, and medical.
Recently, the Financial Times noted: “Expectations are high that India will finally realise its full economic potential through a combination of Modi magic, its abundant young labour force and a more liberal policy regime. A recent adjustment in the country’s accounting has led to claims that it may already have replaced China as the world’s fastest growing economy.”