Abstract
Northern India is the political and military heartland of India. It is also a main hub in the government tender market. In recent years however a steady influx of businesses into Northern India's industrial parks and the employment opportunities they represent have gradually stimulated the demand for electronics products among businesses and ordinary households. This has served to drive the growth of the Northern Indian ICT market. This report looks at Northern India's environment as a whole and examines the development of the mobile phone, television and PC markets in this region.
Opportunities in the India Tender Market for both Indian and Foreign Companies
Northern India is the political and military heartland of India. It is also a main hub in the tender market. In the past, most local Indian companies lacked the capability to fulfill tender requirements so tended to partner with foreign companies to bid on tenders. Economic development, however, has seen local Indian electronics brands gradually mature. These will become stiff competition for foreign vendors when bidding on Indian government tenders. The local Indian component industry is still relatively under-developed. Foreign electronics components suppliers should look at boosting their collaboration with local manufacturers in order to exploit the opportunities on offer in the Indian tender market.
Industry Development Key Growth Driver in Northern India
State governments in Northern India have been actively developing new industrial parks in recent years (e.g. Gurgaon) and their efforts have seen a steady influx of foreign and Indian investments into the region. If sorted by purpose, these can be divided into three categories: 1. The mobile phone industry which is closely linked with defense and national security so requires PR activities such as lobbying the government - e.g. Motorola; 2. Expansion of existing facilities in response to India's growing domestic market -e.g. HCL, Samsung; 3. New entrants seeking to move into the Northern Indian domestic market due to its future potential -e.g. Lenovo.
These companies' investment and construction of factories in Northern India will not just stimulate the development of Northern India's ICT industry. Their IT requirements will also help drive the growth of Northern India's electronics market.
The presence of these companies will also offer the people in Northern India with new employment opportunities. This will increase incomes and eventually stimulate their demand for electronics, especially mobile phones and home appliances. Generally, apart from New Delhi, Northern Indian states that are also key markets for electronics include Himachal Pradesh, Haryana and Uttarakhand.
Appendix
List of Companies
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HCL |
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Lenovo |
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Motorola |
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Samsung |