Secondly, Indian tastes have started to be more refined and Indian people are looking for more western furniture style. The prospect of the furniture sector in India seems positive. Several agreements have been signed between local producers looking for technology and European companies trying to reach a market or to reduce their costs. A recent on-field UEA research , co-funded by the European Commission, has allowed to identified some 150 Indian companies (furniture manufacturers and retailers but also banks, hotels, enterprises) wishing to start commercial and/or industrial co-operation with EU counterparts. Their company profiles are quite complete. Legislation on various ways of setting up business and on intellectual property rights exists as well as a lot of advantages for foreign companies to establish business alone or with partners in India . Indian government is continuously taking steps to minimize entry-exit barriers for foreign companies and government is facing pressure to liberalise the duty structure. Further, in comparison with other countries such as China and Mexico, where the time required to start a business is less, India still involves more legal fulfillments. Hopefully, in coming years these shortcomings will be done away with.
The furniture industry in India is highly fragmented: the 85% of the national furniture production comes from small size firms. On the contrary, the office furniture segment displays a higher degree of industrial concentration, concerning particularly the segments of metal and plastic furniture. Wooden furniture is concentrated in States where forests are more readily attainable. But India, due to the shortage of timber resources, is often forced to import them from the neighbouring countries. The Indian office furniture production is estimated to amount to around US$ 1.6 billion, 40% is operative desking.
THE U.S. OFFICE FURNITURE MARKET
Historic Industry Growth
The table and graphical...