:: COMPONEX NEPCON

Significant growth in auto exports in November: SIAM

Delhi


	Post Show Report
	Coming Soon

Knowledge & Exhibition Partner

Endorsed & Supported By

View all our Supporting Associations

Trade Media Partners

View all our Trade Media Partners

Official Travel Partner

Preferred Hotel Partner

Beverage Partner

Exclusive Business News
Channel Partner

Official Airline Partner

Domestic Fares

International Fares

Organised by

India

India – The Economic Bellwether

By Debasish P. Choudhury, Regional Editor – India, Global SMT & Packaging

India has been one of the best performers in the world economy in recent times, but rapidly rising inflation and the complexities of running the world’s biggest democracy are proving challenging.

Recent growth trends in Indian economy

The Indian economy grew 9.2% in 2007 and 9.6% in 2006, emerging as the second fastest growing major economy in the world. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market.

As per a recent report by Goldman Sachs, the Indian economy will grow at the rate of 8.8% until 2020; with this growth rate, India would become the second biggest economy in the world by 2050, next only to China.

Like most of the world, however, India is facing trying economic times in 2008. The Reserve Bank of India had set an inflation target of 4%, but by the middle of the year it was running at 11%, the highest level seen for a decade. The rising costs of oil, food and the resources needed for India’s construction boom all played a part.

It is not all doom and gloom, however. A growing number of global analysts feel that the long term health of the Indian economy is sound, and this is a needed correction rather than a downtrend.

The Indian government certainly hopes, despite an uncertain economic outlook, that India is expected to grow around 7.5 percent this fiscal. It views investment in the creaking infrastructure of the country as being a key requirement and has ear-marked 23.8 trillion rupees, approximately US $559 billion, for infrastructure upgrades during the 11th five year plan. It expects to fund 70% of project costs, with the other 30% being supplied by the private sector. Ports, airports, roads and railways are all seen as vital for the Indian Economy and have been targeted for investment.

During the period of stable growth, the performance of the Indian service sector has been particularly significant. The growth rate of the service sector was 11.18% in 2007 and now contributes 53% of GDP. The industrial sector grew 10.63% in the same period and is now 29% of GDP. Agriculture is 17% of the Indian economy.

Growth in the manufacturing sector has also complemented the country’s excellent growth momentum. The growth rate of the manufacturing sector rose steadily from 8.98% in 2005 to 12.3% in 2006. The information and communication sector also registered a significant growth rate of 16.64% in the same year.

Another significant feature of the growth process has been the consistently increasing savings and investment rate. According to the PM's Economic Advisory Council report, while the gross saving rate as a proportion of gross domestic product (GDP) has increased from 29.7 per cent in 2003-04 to 34.7 per cent in 2006-07, the aggregate gross investment rate has increased from 28 per cent in 2003-04 to 35.1 per cent in 2006-07.

The anxiety we feel about rising prices, plummeting home values and a weak rupee is real. But, perhaps we should take comfort in the fact that, historically, recessions are relatively short and they're usually followed by long periods of prosperity.

India’s next growth driver - Manufacturing

In the global economy of the 21st century, India’s software prowess is the blue chip of its soft power. The software services sector is red hot, but the same can't be said for its electronic hardware sector. Beneath the surface, however, things had begun to change since 1995.

India's potential electronic manufacturing renaissance is still in its early stages. But the emergence of a vast domestic market and relatively low-cost work force with advanced technical skills is attracting more and more multinationals to set up manufacturing operations in India. This point is largely demonstrated by the phone manufacturers such as LG, Nokia and Motorola; telecom equipment makers like Alcatel-Lucent, D-Link, Ericsson, Siemens and EMS companies such as Elcoteq, Flextronics, Foxconn, Jabil, Celestica, Incap, Sanmina-SCI to name a few.

A recent report by Gartner says that electronic equipment production in India is bound to reach US $32 bn by 2011, compared to $14 bn in 2006. This signifies a CAGR of 18%. Gartner also says that semiconductor consumption in India would more than double, from US $2.8 bn in 2006 to US $7.2 bn in 2011.

Latest figures from the Department of Telecom (DoT) indicate that revenue from the telecom manufacturing sector is set to cross US $6.5 billion (Rs. 23,656 crore) figure in fiscal 2007-08. At the current growth rate, the Indian telecom equipment manufacturing sector is set to become one of the largest globally by 2010. Interestingly, over 80% of the electronic components used for production of telecom equipment manufacturing are imported today. Here lies an opportunity!

Grab a slice of this business opportunity at the 15th COMPONEX NEPCON INDIA 2009 - South Asia’s most trusted brand when it comes to electronic components, materials and production technology show, which opens its door on February 24 through 26, 2009 at Pragati Maidan, New Delhi. The COMPONEX NEPCON show has been serving the electronic industry for over 15 years and understands the needs of the industry, which helped COMPONEX NEPCON bring custom-made results for its patrons and their businesses year after year.

Recently, ELCINA Electronic Industries Association of India (ELCINA), the premier electronic industry body entered into an exclusive tie-up with Reed Exhibitions India, the organisers of COMPONEX NEPCON as the “Exhibition & Knowledge Partner”, and IPCA, the body of PCB manufacturers, has agreed to actively “Support and Endorse” the show.

The theme for this year’s exhibition is 'New', for which Reed Exhibitions coined the phrase “Connect with the NEW in the electronics industry”. At COMPONEX NEPCON, Reed’s emphasis is on offering their exhibitors, visitors and the industry the power of 'NEW' – new business, new products, new trends & technologies, new contacts and new ideas.

Mark your calendar! COMPONEX NEPCON is considered the industry's window to the future – “NEW”!

Be There!