IT MANUFACTURING IN INDIA 

There are immense opportunities in the Indian hardware sector as the IT sector continues to be as dynamic as ever. With increasing PC penetration in both corporate and home segments, the opportunities for IT manufacturing companies are immense.

• The competitive edge of Indias IT capabilities is well recognized globally. Both hardware and software sectors have made important strides in the past one decade. It is evident that the movement up the value chain in product design, involving integration of both hardware and software, commonly known as “embedded technology”, will truly be to the advantage of India and the global IT industry. 

• The Indian IT industry has matured over the years and improvements in quality standards in products and  services has also evolved. MNCs can establish their manufacturing facilities in India as the hardware industry possesses requisite expertise and world class manufacturing standards. 

• The socio-economic dimensions of IT manufacturing are equally important. A vibrant IT manufacturing base in the country would have immense multiplier effects on generating employment as well as spawning of tiny and small enterprises. There is immense scope for employment generation not only in manufacturing but also in servicing, maintenance etc. 

Indias Production of Electronic  Hardware during the year 2008-09 is estimated to be Rs. 94690 crore (US$ 20.58 billion). The production during the year 2008-09 registered a growth of 12.18 percent (-1.8 percent in US$ terms) over the year 2007-08 when the total production of Electronics hardware was estimated to be Rs. 84410 crore (US$ 20.96 billion). 

The annual average growth during the past five years in the production of Electronics Hardware has been 16.67 percent. Maximum production is seen in the communication and broadcasting sector followed by consumer electronics sector.

Export of Electronics goods and components from India during the year 2008-09 registered a growth of 137 percent ( 107 percent in US$ terms) over the year 2007-08. In value terms, export of electronics goods during the year 2008-09 is estimated to be Rs. 31226 crore (US$ 6790 million) up from Rs. 13200 crore (US$ 3279 million) estimated in the year 2007-08.

During the year 2008-09 export of  Telecom equipment registered a very high growth and is estimated to reach a  value of Rs. 12276 crore (US$ 2669 million) up from Rs. 625 crore (US$ 155 million) estimated in the year 2007-08.

Export of Consumer electronic goods,  Electronic component and computer hardware also registered good growth during the year 2008-09. Export of  Consumer Electronic Goods increased  from Rs. 1600 crore (US$ 397 million) to  Rs. 2600 crore (US$ 565 million) during the year 2008-09. Export of Electronic components is estimated to Rs. 10500 crore (US$ 2283 million) during the year  2008-09 up from Rs. 6100 crore (US$ 1515 million) registering a growth of 72 percent (51 percent in US$ terms) in the year 2007-08. Export of Computer Hardware increased from Rs. 990 crore (US$ 246 million) estimated in 2007-08 to Rs. 1650 crore (US$ 359 million) in the year 2008-09.

MAJOR ITEMS OF EXPORT

Export of Telephone sets including mobile telephone has emerged as the top item of export under the electronics hardware category during the year 2008-09. Export of Telephone sets increased from Rs. 121 crore ( US$ 30 million) estimated in 2007-08 to Rs. 11142 crore (US$ 2423 million) during the year 2008-09. Telephone sets have been majorily exported to UAE (17 percent), Taiwan (16 percent), South Africa (15 percent, China (7 percent) and France (5 percent), Export of Solar cells also registered a very high growth during the year 2008-09. In value terms export of solar cells increased from Rs. 1047 crore (US$ 260 million) estimated in 2007-08 to Rs. 2606 crore (US$ 566 million) during the year 2008-09 registering a growth of  149 percent ( 118 percent in US$ terms. Solar cells were mainly exported to Germany (44 percent) and Italy (13 percent). The other major items of  export during the year 2008-09 are parts of switches, rectifiers, recorded video tapes, Television sets, Computer parts, Communication equipments, Transformers, DVD Drives etc. 

MAJOR DESTINATION OF ELECTRONICS HARDWARE EXPORTS DURING THE YEAR 2008-09.   

Singapore, Hong Kong and other South East Asian countries which was at the 3rd position during the year 2007-08 has emerged to be the top destination for Indias Electronics Hardware exports during the year 2008-09 Export to this regions registered a growth of 175 percent (141 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms export to this region has increased from Rs. 2822 crore (US$ 701 million) estimated in 2007-08 to Rs. 7776 crores (US$ 1691 million) during the year 2008-09. Share of export to EU countries has come down from 28.55 percent estimated in 2007-08 to  23.88 percent in 2008-09 loosing its top position to Singapore, Hong Kong  and South Asian countries which accounts for a share of 24.90 percent. Export to Middle East countries also registered a high growth of 179.53 percent (145 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms the export of electronics hardware to middle east countries during 2008-09 is estimated to be Rs. 4625 crore (US$ 1006 million) up from Rs. 1655 crore (US$ 411 million) estimated in 2007-08. Middle East  countries which was at a 4th position during the year 2007-08 gained the 3^rd position during the year 2008-09. Share of Export of North America which was at the 2nd top position during the year 2007-08 has come down from 21.75 percent estimated in the year 2007-08 to 14.24 percent during the year 2008-09 shifting it to 4th position. Export to all other regions registered growth during the year 2008-09.

 CONTRIBUTION OF STATES AND UNION TERRITORIES.

 There has been a very high growth in exports from the state of Tamil Nadu. The State of Tamil Nadu has become the top exporter of Electronics Hardware during the year 2008-09. In value terms, export of electronics hardware from Karnataka increased from Rs. 640 crore (US$ 159 million) estimated in 2007-08 to Rs. 13200 crore (US$ 2870 million) in the year 2008-09. Export from Tamil Nadu accounts for a share of  42.27 percent in Indias total electronics hardware exports. The other major States contributing to Indias export of Electronics Hardware are Karnataka, (19.86 percent), Uttar Pradesh (14.45 percent), and  Maharashtra (13.13 percent).