EoW November 2010

The Indian marketplace 2010

India is traditionally strongly focussed on the domestic market and economic development consequently depends primarily on the domestic situation. Therefore, the recent nancial crisis has generally had less e ect on India than on nations with a stronger export focus. Three economic stimulus packages have been created in India since the previous Wire & Cable India, with particular emphasis on infrastructure projects. A recovery is anticipated for 2010 and economic activity is said to be increasing with the rising con dence of companies and consumers. For 2010, a GDP increase of 6.4% is expected, after 5.4% in the previous year. In addition, a real percentage increase of 7.4% is being forecast for the industrial sector. The wire industry in India is heavily dependent on itsmainusers, theautomotive, telecommunication and construction industries. The rapid growth of these industries in the last few years has led to an annual growth of approximately 25% in the wire and cable industry, though growth has temporarily stalled since the nancial crisis. As a result, the forecasts for the wire industry are dependent on how these industries continue to develop. In 2008/2009, wire production declined in most sectors but is now looking forward to a recovery. The building sector in India has stabilised after a six-month period of weakness.

In the current ve-year plan (2007-2012) it is expected to grow by an average of 10% per annum. Lately, the industry has recorded a growth of 7%. The public sector deals with about two-thirds of investments. As the Indian government focuses on public/ private partnerships with major infrastructure projects, the ratio will switch in favour of the private sector. Infrastructure construction is the chief stimulus of the construction industry; the development of the transport network, in particular, being a priority for the government. While 2008/2009 sales gures in the automobile industry were characterised by uncertainties about the e ects of the nancial crisis, the Indian automobile industry appears to be recovering. Annual car sales gures have doubled in the last ve years, and are expected to double or even triple by 2015. In addition, the telecommunications market in India is the third largest in the world – and the fastest growing. Furthermore, in the internet sector, the government is endeavouring to provide broad- band connections to the rural regions of India. This is an exciting time to enter the Indian growth market, and Wire & Cable India 2010 provides the ideal exhibiting and networking opportunity for the region.

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Photo copyright: BigStockPhoto.com ‘Gateway of India, Mumbai’ Photographer: Lebedinski ‘Elephant Salute’ Photographer: Jeremy Richards ‘Wires’ Photographer: Natalia Kuzmina (Nattle)