Despite several obstacles the consumer durables shop in India is on the way to accomplish a steady and fantastic increase rate which is the succeed of the rising purchasing power of the Indian middle class. Indians are adopting the newest technology products very rapidly and that is why the technology-oriented products are doing better in the market.
The interrogate and imports of the electronic products, along with the components is addition 20-25% annually. Not only the hunger of adaptation of the new products but the addition consumer awareness is also prompting the quality-consciousness.
Consumer
Majority of consumer durables provider groups in India are Multi Nationals which are here to tap the world's fastest growing consumer electronics market. The increase of this segment during the year 2007-08 is estimated to be 12.5 over the previous year of 2006-07. The estimated production of the consumer electronics segment during 2007-08 was Rs. 22,500 crore. As far as exports are concerned, the total estimated exports increase of the electronics & It products was 14.5 over the previous year.
Potential Fdi Avenue
Being stimulated with the consumer durables market's growth, the foreign giants are firming up their investments in India. Among their considerations is the willingness to found India as their manufacturing hub for operations spread over the world. This is the guess why the electronics and electrical sectors have been attracting the highest Fdi in India. Also, due to the strengthening rupee and its impact on the input costs for these import-intensive industries, this segment has possible to attract even greater Fdi.
Other facts that act as shot-in-the-arm for the multinationals are conducive procedure measures, availability of skilled manpower and lower input cost and logistics.
Investments getting shape
One of the prominent electronics giants Samsung India, is set to found its seller base in Chennai for its global operations. Lg Electronics is investing at its Noida and Pune centres to boost its export potential.
Reports indicate that investment plans of Haier and Tcl are also in the pipeline. Especially, Tcl, a prominent giant of China, is planning to found a manufacturing facility in India for its domestic as well as global market.
According to Mr M A Dhandapani, who is the member of Consumer Electronics and Appliances Manufacturers Association, the consumer electronics segment has been successful in attracting huge investments in R&D as well as capacity augmentation.
At the same time, the Director (sales & marketing), Lg India, is upbeat about reaching Rs 1,000 crore annul export target in view of the promising markets of Europe, West Asia and Asia.
Another forerunner in the segment, Haier India, has recently acquired a manufacturing facility in Pune for refrigerators, colour television and washing machines.
Exigency of Penetration
Analyzing the interrogate and supply scenario, it is observed that the increase of domestic interrogate has been prompting the consumer electronics segment over the past few years. Easy accessibility to capability manpower and a vast possible in terms of interrogate stimulate the multinationals to do company here. Even though the penetration level of numerous electronic products is still low and an issue to deal with and once resolved, it will promote the domestic consumption and the export interrogate along with employment generation in future.
consumer Electronics - New Fdi Destination Consumer
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