It's India's turn as China losing competitive edge: Samsung's Park
18 August 2014
South Korean electronics giant Samsung, one of the multinational companies that have major manufacturing operations in India, says the country is set to become the next global factory as China loses its competitive edge.
"China is losing the competitiveness very rapidly today," B D Park, Samsung's president and CEO for South West Asia, told The Economic Times.
"Labour costs are rising [in China] and as they become richer, their currency will gain against the US dollar, which means that they will lose the competitiveness for export," he said.
Park added that with India already being a software superpower, "it should now emerge as a global factory, for which infrastructure should be created with the help of public and private sector".
He pointed to India's young population, which has the skill and talent to help make India an export hub for the world. He asserted that the focus on the manufacturing sector would help in creating employment for people, besides maintaining a balance in exports and imports.
"More than 75 per cent Indians are below 25 years of age who must be given the right jobs," Park said.
The electronics major manufactures most of its locally-sold products including smartphones, refrigerators, air conditioners, TVs and washing machines from two factories in India, and also sells abroad.
Samsung is currently the fourth-largest MNC in India by revenue and expects to be the leader in the next financial year ''if not this year itself''.