Shortage of Electronic Manufacturing Services Firms Obstructs India’s Sprint In South Asia

New Delhi, Aug 23 (KNN) The lack of global electronic manufacturing service (EMS) firms is holding back India’s growth in the segment in the South Asian Region, said global electronic components distributor Avnet’s regional president for South Asia and Korea, Tan Aik Hoon. 

Many of the EMS companies are present in countries like Thailand, Malaysia and Vietnam, she explained.

India stands to benefit from the strategy of many multinationals aiming to move out of China. 

It is, however, not yet at the same level as peers like  Vietnam, Thailand and Malaysia, she added.

“Today the India percentage of our South Asia business is 20% and I don’t see why it won’t grow to 25-30%. It should be about 35-40% in the long run,” Aik Hoon said during a media interaction in Bengaluru on Tuesday. 

The China Plus One strategy is a business move to diversify manufacturing and sourcing operations of companies beyond China to reduce dependence on the East Asian giant.   (KNN Bureau)