Where India fits within Flextronics global supply chain

Abstract

This project focuses on Flextronics International manufacturing strategy regarding its global supply chain design, and its export strategy from India. It also focuses on the application of the Flextronics case to the question of India's role in global electronics manufacturing. Following China's successful economic model, India is establishing itself as a global manufacturing hub by attracting multinational companies. Over time, India has the potential to become a large end-market for electronic products. In addition, India's low-cost labor-base may allow it to become a lucrative manufacturing location for export markets. On the other hand, the infrastructure is problematic, the component supply base is extremely undeveloped, and extensive competition exists from well-developed, low-cost Asian countries. This thesis examines the competitive advantage and disadvantage of export-oriented electronic manufacturing in India. It studies the business environment in India in terms of infrastructure, taxes, bureaucracy, and government policies. The thesis also identifies high potential products for manufacturing in India, and compares the total cost in India to the cost in China for the manufacture of a mechanical enclosure.

(cont.) For the mechanical enclosure, this analysis establishes that India can be as competitive as China on a cost basis. The study also looks beyond cost to identify the key challenges for high-volume manufacturing in India and suggest ways to address them.