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The latest European Report: "made in India" challenges China in five years a new report says that "made in India" will become the next global economic miracle in the next five years and challenge China's position as a global manufacturing center

Capgemini, the largest IT consulting company in Europe, said in this report that although the Indian economy is currently famous for three types of outsourcing businesses in the world: information technology, finance and customer service, developed countries are bound to urge industry innovative technologists to "show strong interest in transferring manufacturing projects that are more and more able to achieve stable production processes under such a narrow wall thickness to India"

Roylenders, the author of the report and vice president of Capgemini, said that the conclusion that "India will challenge China's position as a manufacturing center in the next three to five years" came from a survey of 340 large manufacturing companies around the world, most of which are Fortune 500 companies

"to our surprise, when we asked about their plans for the next three or four years, they said that the transfer of manufacturing business to India was a priority over outsourcing office support services." Landers said that the low cost of land and labor will be the main advantage for India to obtain the manufacturing projects of multinational companies. However, about half of the enterprises surveyed by Capgemini and having manufacturing projects in India said that India must improve its infrastructure

at present, China accounts for 8% of global exports of manufacturing products, while India's share is less than 1%. According to the report, the per capita monthly salary of China's manufacturing industry is 250-350 US dollars, which is 100-200 US dollars lower than that of Thailand and other emerging Asian economies, but lower than that of India. The starting salary of manufacturing workers is 60 US dollars per month

landers said that the importance of manufacturing in the Indian economy will surpass that of it and service outsourcing in the next few years

as for the prospect of building factories in India, an example often cited by analysts is that Hyundai Motor Company of South Korea invested 1billion US dollars to build a factory in India in 1998, and the annual export volume of cars of the factory soon reached tens of thousands. At present, Hyundai has transferred its mini car manufacturing business to India

the Indian Auto Parts Manufacturing Association predicts that India's auto parts export volume will double that of 2006, reaching US $5.9 billion next year, and reach US $20billion within seven years

multinational manufacturing giants with factories in India also include Nokia in Finland, POSCO in South Korea, and Dell in the United States. The company is headquartered in Xiamen. For these companies, India, with a population of 1.1 billion, also has a huge domestic market and the demand caused by its development of infrastructure

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