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India: not the new China
May 1, 2006

The growth of the electronics industry is following a distinctly different path in India than in China, because the two countries are following very different economic development models. That's the view of James Haughey, director of economics of Reed Business Information (T&MW's parent company), writing in sibling publication Electronic News.

China's comparative advantage a decade ago, he writes, was abundant low-cost labor; India's advantage is a surplus of educated workers. Consequently, he says, India "is not and never will be the next-cheaper country to head for in search of the lowest current production costs. Manufacturers using the 'least cost' strategy are now moving operations to Vietnam and Indonesia."

Posted by Rick Nelson on May 1, 2006 | Comments (0)