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Computer Hardware

The computer hardware & peripheral industry showed lackluster performance during 2008-09. SMEs, retail, BPO/IT-enabled services and corporate sectors demonstrated restraint in IT purchases due to concerns of liquidity and general economic performance. The demand for Personal Computers (PCs) has remained sluggish. Deteriorating overall business condition has made a dent on demand in 2008-09, which is reflected in the decelerated growth rate in production of computer hardware. Most hardware companies import almost 70 percent of their raw material requirement. Depreciation in  the Indian rupee adversely affected the raw material cost  and continued to impact the industry margins and arrested the price drops in IT products. The overall PC sale for 2008-09 is expected to drop to 6.78 million as against 7.34 million during 2007-08. 

A total of 5.27 million desktops and 1.5 million notebooks estimated to be consumer in 2008-09. Desktop sales estimated to decline by  4% while that of notebooks 21%. The slow down in consumption can be attributed to the dampening of consumer sentiment in India due to the global economic crises, especially in the second-half of  2008-09. 

The production figure for this segment  for the year 2008-09 is estimated to be Rs. 13,490 crore with growth plummeting by 15 percent. 

PRODUCTION OF COMPUTER HARDWARE

Production of computer hardware increased from Rs. 15870 crore (US$ 3942 million) estimated in the year 2007-08 to Rs. 13490 crore (US$ 2933 million) in the year 2008-09. Production of computer hardware registered a decline of 15 percent (25.6 percent in US$ terms) in the year 2008-09.

 

EXPORT OF COMPUTER HARDWARE 

Export of Computer Hardware registered a growth of 66.67 percent ( 45.90 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms export of Computer Hardware is estimated to Rs. 1650 crore (US$ 359 million) up from Rs. 990 crore (US$ 246 million).

 

MAJOR ITEMS OF COMPUTER HARDWARE EXPORTS 

Various parts of Computers have emerged to be the top item of export during the year 2008-09. Total value of  export of parts of computers during the year 2008-09 is estimated to be Rs. 747 crore (US$ 162.42 million) . Parts of computers were mainly exported to USA and South Africa. With the increasing usage of DVDs, there has been a surge in demand for DVD drives. Export of DVD drives from India registered a growth of 18.38 percent (3.63 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms export of DVD drives increased from Rs. 421 crores (US$ 105 million) estimated in 2007-08 to Rs. 498 crores (US$ 108 million) in the year

2008-09 making it the top item of  export under the Computer Hardware sector. Export of personal computers also registered a high growth of  68 percent (47 percent in US$ terms) during the year 2008-09 over the year 2007-08. The other major items of export under Computer Hardware during  2008-09 are head stack, Monitor, Mouse, Ink-jet Printers, Scanner and projectors.

DESTINATIONS OF COMPUTER HARDWARE EXPORTS. 

Export of Computer Hardware to EU Countries, South Asian Countries, North America, Middle East Countries and Latin America registered good growth during the year 2008-09. EU Countries have emerged to be the top destination for Indias Computer Hardware Exports during the year 2008-09. Export to EU Countries registered a growth of 61 percent (41 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms, export of computer hardware to EU Countries is estimated to be Rs. 472 crore (US$ 103 million) up from Rs. 293 million (US$ 73 million) estimated in the year 2007-08. Export to Africa and Far East countries registered decline during the year 2008-09.

 
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