Introduction

India is today in the midst of rapid economic transformation in the global economy. In fact, it is one of the major factors behind the shifting of the global economic focus towards Asia, and is expected to play a significant role in making the 21st century largely about Asia. India has been ranked 25th in terms of economic transformation (Transformation Index 2008), way ahead of China’s 85th position, by German Bertelsmann Foundation.

India is fast emerging as a global manufacturing hub. It has all the requisite skills in product, process and capital engineering, thanks to its long manufacturing history and higher education system. India’s skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. The greatest advantage that India has over the other manufacturing hubs is greater mobility and better communication skills and knowledge of English. India with its vast design skills has attracted a lot of outsourcing technological orders.

According to a UNIDO analysis mentioned in the International Yearbook of Industrial Statistics 2009, India ranks among the top 12 producers of manufacturing value added (MVA).

India as Manufacturing Hub

India’s has fast emerged as a manufacturing hub as Multinational companies look for long term alternatives. As a result of Government policy, progress has been achieved in the manufacturing of telecom equipment in the country. There is a significant telecom equipment- manufacturing base in the country and there has been steady growth of the manufacturing sector during the past few years. In the last 5 years, the country contribution in mobile devices has increased from 0 to 6% of the global device production. Several Indian companies in the telecom and electronics industry are creating global scale.

Rising demand for a wide range of telecom equipment, particularly in the area of mobile telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many renowned telecom companies setting up their manufacturing base in India. Nokia and Nokia Siemens Networks have set up their manufacturing plant in Chennai. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur. Motorola , Foxconn ( OEM ) has setup large manufacturing plants in Chennai, Elcoteq set up handset manufacturing facilities in Bangalore. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ in Chennai. Other major companies like Aspcomp, Solectron etc have decided to set up their manufacturing bases in India. A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is expected to be a manufacturing hub for the telecom equipment.

With upcoming broadband revolution, the demand for wireline products, transmission equipment, wireless equipment, fibre and devices will multiply, providing large scale opportunities for Indian and Multinational companies.

The rapid development of the semiconductor ecosystem and the electronic ecosystem in India is connected with the growth of telecom sector in India, as both domestic and foreign companies are expanding their operations across the whole value chain in the country.

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