Consumption disruption in 2019?
The U.S. consumer has been a significant contributor to domestic economic growth in 2018. Will consumer consumption be hit by inflation in 2019?
Lava, a small player in India’s booming mobile economy, is nowhere near Apple in name recognition, but it is a bright spot in India’s effort to become a global hub for electronics manufacturing, reports Reuters.
In just a few years, Lava has grown from a cell phone importer to a manufacturer with about 3,500 employees, two factories on the outskirts of New Delhi and expansion plans in the works.
Over the past four years, India’s mobile phone industry has created 450,000 jobs, making it the world’s second-largest mobile phone maker, and well positioned for further growth as trade tensions and rising costs dampen China’s world-leading electronic manufacturing sector.
“India has an opportunity to become a major player in the global supply chain because we have a very strong domestic economy,” said Vikas Agarwal, the India head of OnePlus, a Chinese smartphone maker.
Lava is hardly the only phone manufacturer in India however. Samsung this year opened what it said was the world’s biggest mobile phone plant there. The South Korean giant last year said it will spend 49.2 billion rupees ($672.45 million) to expand capacity at its new plant over three years. And not far from Samsung’s factory, China’s Oppo, one of India’s top smartphone players, is building a massive plant too. It is expected to open soon. (Source: Reuters)
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