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Over All Electronics And IT Exports

INTRODUCTION 

Electronics and Information Technology is proving to be the growth engine in the current day economies of the world. The liberalised policy initiatives of the Government of India in the last decade have propelled the Indian IT industry on to a path of development and prosperity. 

Over the years, the Electronics Hardware Industry has evolved to offer several innovative products for the convenience of the mankind.  Electronics devices have become integral part of human life and are playing a major role in their everyday routine activities. The electronics hardware industry is identified as one of the fastest growing segment in terms of international trade. 

The Electronics Hardware and Computer Software / Services industry, a comparatively new entrant in Indias export horizon, has emerged as a forerunner among all industries and has been consistently treading on a high growth path in recent years. 

India has embarked on a policy agenda, which aims to restructure its economy with enhanced global participation. Foreign Direct Investment (FDI) to supplement domestic investment for achieving a quantum jump in growth rate is now an integral part of government of India policy initiative. 

Imparting greater transparency to business procedures and integration with global market place are seen as the hallmark of the new industrial, trade and fiscal policies. Salient features of the industrial policy for the Electronics and IT sector are:

  • Licensing virtually abolished except for manufacturing aerospace and defence equipment. Private sector entry into defence manufacturing is permitted. 

  • There is no reservation for public sector enterprises in the electronics industry and private sector investment is welcome in every area except aerospace and a few strategic defence industries. 
     

  • Electronics and IT units can be set up anywhere in the Country subject to clearance from the authorities responsible for control of environmental pollution and local zoning and land use regulations 
     

  • Industries exempted from licensing are only required to file information in the prescribed Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), Ministry of Industry, Government of India.

The Information Technology (IT) industry has shaped up as a major success story in Indias economy. Exports of computer software and IT enabled services have become a large component of the exports of the country. This is also an area where the Governments role has been very different from that in some other industries. The important contribution of the Government in the growth of this industry consist of telecom policies, which enabled low cost computer networking in the country and  investments in human capital such as through the IITs.

Today, Indias competency in Information Technology, more significantly in Computer Software and IT Enabled Services is recognized globally. Over the last decade, the Indian IT industry has been growing by leaps and bounds.  

INDIA’S OVERALL EXPORT DURING THE YEAR 2008-09 

Indias overall export during the year 2008-09 is estimated to be Rs. 1355049 crore (US$ 294.64 billion) registering a growth of 26.84 percent (11.18 percent in US$ terms) over the year 2007-08 when Indias over all export was estimated to be Rs. 1068331crore. (US$ 265 billion).

The share of Services in Indias overall export is estimated to be Rs. 515088 crore (US$ 112 billion). There has been a growth of 16.31 percent (1.82 percent in US$ terms) in export of services over the preceding year when the export of services was estimated to be Rs. 442860 crore (US$ 110 billion).

INDIA’S MERCHANDISE EXPORT

The Countrys Merchandise Export registered a growth of 34.3 percent (17.56 percent in US$ terms) during the year 2008-09 over the year 2007-08.  

In value terms, Indias merchandise export increased from Rs. 625471 crore (US$ 155.36 billion) estimated in 2007-08 to Rs. 839977.96 crores (US$ 182.64 billion) during the year 2008-09.

INDIA’S GROSS DOMESTIC PRODUCTION (GDP)
DURING 2008-09.

Indias Gross Domestic Production (GDP) at current prices is estimated to be Rs. 4933183 crore (US$ 1072.66 billion) registering a growth of 23.15 percent (7.81 percent in US$ terms) over the year 2007-08 when Indias GDP at current prices was estimated at Rs. 4005870 crore (US$ 995.00 billion).

 

INDIA’S ELECTRONICS AND COMPUTER SOFTWARE / SERVICES INDUSTRY 2008-09

Indias Electronics and Computer  Software / Services industry is estimated to be Rs. 379754 crores (US$ 82.57 billion) during the year 2008-09. 

The share of Electronics Hardware Industry is estimated to be Rs. 94690 crores (US$ 20.58 billion) and that of computer / services sector is Rs. 285064 crores (US$ 61.98 billion). In percentage share terms, production of Electronics Hardware accounts for a share of 24.93 percent and Software /  Services accounts for 75.07 percent. Production of Electronics and Computer Software / Services sector during the year 2008-09 registered a growth of 23.93 percent (8.49 percent in US$ terms) over the year 2007-08 when the total production of  Electronics, Computer Software /  Services was estimated to be Rs. 306420 crores (US$ 76.11 billion).

SHARE OF ELECTRONICS AND COMPUTER SOFTWARE / SERVICES INDUSTRY IN INDIA’S GDP DURING 2008-09.   

The production of Electronics and  Computer Software / Services estimated at Rs. 379754 crore (US$ 82573 million) accounts for a share of  7.70 percent in Indias GDP at current prices during 2008-09.  

This is slightly higher than the share of this sector in Indias GDP in 2007-08 estimated at 7.64 percent. The share of Electronics and Computer Software / Services Industry in Indias GDP is continuously increasing as it can be seen from the graph above.

 
 

WORLD ELECTRONICS AND COMPUTER SOFTWARE /
SERVICES MARKET AND INDIA’S SHARE.

The world production of Electronics and Computer Software / Services during the year 2008-09 is estimated to be US$ 2640 billion. The world Electronics Hardware production is estimated to be US$ 1700 billion and IT Services market is estimated to be US$ 940 billion. 

Indias total production of Electronics and Computer Software / Services estimated at US$ 82.57 billion accounts for a share of 3.13 percent in the world production. 

ELECTRONICS AND COMPUTER SOFTWARE /
SERVICES EXPORTS 2008-09.

Indias Electronics and Computer  Software / Services export registered a growth of 38 percent (21 percent in US$ terms) during 2008-09 over the year 2007-08. 

In value terms, export of  Electronics and Computer Software / Services during the year 2008-09 is estimated to be Rs. 259060 crore (US$ 56.33 billion) up from Rs. 188200 crore (US$ 46.74 billion) estimated in the year 2007-08. Export of Electronics, Computer Software / Services sector has been maintaining an outstanding annual average growth rate of 31.57 percent (31.57 percent in US$ terms) during the period 2003-04 to 2008-09.

                                            

SHARE OF ELECTRONICS AND COMPUTER SOFTWARE /
SERVICES EXPORT IN INDIA’S TOTAL EXPORT.

Indias overall export during the year 2008-09 is estimated to be Rs. 1355049 crore (US$ 294.64 billion). Indias Electronics and Computer Software / Services export valued at Rs. 259060 Cr (US$ 56.33 billion) accounts for a share of 19.12 percent in Indias over all export during the year 2008-09.

                                            

EXPORT VIS-À-VIS PRODUCTION

During the year 2008-09, out of the total production of Rs. 379754 crore ( US$ 82.57 billion) 68.22 percent was exported to various countries of the world. The share of export content in Indias Electronics and Computer Software / Services production has been significant since last several years as shown in the graph below:

       
 

 

EXPORT SEGMENTS UNDER ELECTRONICS AND
COMPUTER SOFTWARE / SERVICES SECTOR

Electronics and Computer Software / Services sector can be broadly segmented as below:

  1. Computer Software and related services

  2. ITeS / BPO 

  3. Computer Hardware 

  4. Electronics Components

  5. Electronic instruments which includes

• Industrial equipments,

• Medical equipments,

• Office equipments

• Strategic, Electronics equipments

  1. Consumer Electronics 

  2. Telecommunication Hardware and related services.

The sectoral contribution of the above segments in the Electronics and Computer Software / Services export during the year 2008-09 is as shown.

                              

MAJOR ITEMS OF EXPORT UNDER ELECTRONICS AND COMPUTER SOFTWARE /
SERVICES SECTOR DURING THE YEAR 2008-09. 

Computer Software / Services valued at Rs. 164828 crore (US$ 35.84 billion) is the top item of export in this sector during the year 2008-09. ITeS / BPO valued at Rs. 63006 crore (US$ 13.70 billion) is the second top item of export. Followed by are the items under the electronics hardware category. Telephone sets which includes mobile telephones are the top items of export under the Electronic goods during the year 2008-09. In value terms, export of telephone sets during 2008-09 is estimated to be Rs. 11142 crore (US$ 2.42 billion). Solar Cells which were at the 6th position in the year 2007-08 registered a high growth of 149 per cent ( 118 per cent in US$ terms) and has become the 2nd top item of export under Electronics hardware during the year 2008-09. The other major items of export during 2008-09 are Parts of switches, rectifiers, recorded video tapes of educational nature and news/views, Televisions etc

DESTINATIONS FOR INDIA’S ELECTRONICS AND
COMPUTER SOFTWARE / SERVICES EXPORT : 2008-09.
 
 

During the year 2008-09, India exported its various commodities to 247 countries of  the world. Indias export of Electronics and Computer Software / Services during the year 2008-09 was destined  to 221 countries.

REGION WISE EXPORT DESTINATIONS FOR INDIA’S ELECTRONICS AND
COMPUTER SOFTWARE / SERVICES SECTOR.

North America maintains the top position for Indias Export of Electronics and Computer Software / Services during the year 2008-09. This Region accounts for 53.09 percent of the total exports of Electronics and Computer Software / Services from India. Export to North America during 2008-09 is estimated to be Rs. 137547.12 crore  (US$ 29908 million) up from Rs. 110496 crore (US$ 27446 million) estimated in 2007 – 08 registering a growth of 24.48 percent (8.97 percent in US$ terms). Export to EU Countries remains second top destination for export of Electronics and Computer Software Services during the year 2008-09 as well. Export to this region registered a growth of 52.39 percent (33.40 per cent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms, export of Electronics and Computer Software / Services to EU Countries increased from Rs. 50493 crore (US$ 12542 million) estimated in 2007-08 to Rs. 76947 crore ( US$ 16731 million) during the year 2008-09.

Singapore, Hong Kong and other South Asian countries, remains at the 3rd position for Indias export of Electronics and Computer Software / Services during the year 2008-09. There has been a growth of 53 percent (34 percent in US$ terms) to this region during 2008-09. Export to Middle East countries registered a very high growth of 190 percent (154 percent in US$ terms) during the year 2008-09 over the year 2007-08. In value terms export to this region increased from Rs. 3947 crore (US$ 980 million) estimated in 2007-08 to Rs. 11460 crore (US$ 2492 million) during the year 2008-09 resulting in shifting of Middle East Region to 4th top destination for Indias Electronics and Software Exports.  Export to African countries also registered a high growth of 256 percent ( 212 percent in (US$ terms). Export to Japan, Korea & other Far East countries and Latin American countries registered decline during the year 2008-09 over the year 2007-08.

 

MAJOR DESTINATIONS FOR
ELECTRONICS & COMPUTER SOFTWARE / SERVICES
2008-2009
 
 

                                                                           Value : Rs. Cr.                 
                                                                                  (US$ Mln.)

Destination

 

2008-2009

Value

%age of

 

Sectoral

 

Total

NORTH AMERICA

137547.12

53.09

 

(29908.05)

 

 

 

 

EUROPE (EU COUNTRIES)

76947.17

29.70

 

(16731.28)

 

 

 

 

SINGAPORE,HONGKONG

14269.17

5.51

& OTHER SOUTH ASIAN

(3102.67)

 

COUNTRIES

 

 

 

 

 

MIDDLE EAST COUNTRIES

11459.92

4.42

 

(2491.83)

 

 

 

 

AFRICAN COUNTRIES

6253.74

2.41

 

(1359.80)

 

 

 

 

AUSTRIALIA & OTHER

4028.18

1.55

OCEANIC COUNTRIES

(875.88)

 

 

 

 

JAPAN, KOREA & OTHER

3835.01

1.48

FAR EAST COUNTRIES

(833.88)

 

 

 

 

EUROPE (NON EU COUNTRIES)

3568.67

1.38

 

(775.97)

 

 

 

 

LATIN AMERICA

805.25

0.31

 

(175.09)

 

 

 

 

RUSSIA & C.I.S. COUNTRIES

345.27

0.13

 

(75.08)  

 

TOTAL

259059.50

100.00

 

(56329.53)

 

Average Exchange Rate 1US$ =45.99

 

EXPORT OF ELECTRONICS & COMPUTER SOFTWARE /SERVICES  
DURING THE YEAR 2008-09 
ESTIMATED CONTRIBUTION OF STATES / UNION TERRITORIES

REGION

STATES/UNION TERRITORIES

2008-2009

RS. CR

US $ MLN.

SOUTH

KARNATAKA

79350.00

17253.75

 

TAMIL NADU

46000.00

10002.17

 

ANDHRA PRADESH

32610.00

7090.67

 

KERALA

3065.00

666.45

 

PONDICHERRY

81.00

17.61

 

REGION TOTAL

161106.00

35030.66

WEST

MAHARASHTRA

50600.00

11002.39

 

GUJARAT

1725.00

375.08

 

GOA

138.00

30.01

 

REGION TOTAL

52463.00

11407.48

NORTH

HARYANA

14775.00

3212.65

 

UTTAR PRADESH

15500.00

3370.30

 

DELHI

5750.00

1250.27

 

PUNJAB

435.00

94.59

 

RAJASTHAN

775.00

168.51

 

MADHYA PRADESH

350.00

76.10

 

CHANDIGARH

777.00

168.95

 

HIMACHAL PRADESH

152.00

33.05

 

UTTARANCHAL

21.00

4.57

 

JAMMU & KASHMIR

4.00

0.87

 

REGION TOTAL

38539.00

8379.87

EAST

WEST BENGAL

5710.00

1241.57

 

ORISSA

1230.00

267.45

 

BIHAR

9.00

0.00

 

CHATTISGARH

3.00

0.65

 

REGION TOTAL

6952.00

1509.68

 

TOTAL

259060.00

56329.64

 
ELECTRONICS AND COMPUTER SOFTWARE
PRODUCTION AND EXPORTS

2008-2009
 

SECTOR

 

2008-09

US$ MLN.

RS. CR.

CONSUMER ELECTRONICS

 

 

PRODUCTION

5651.23

25990.00

EXPORT

565.34

2600.00

COMM. & BROADCASTING EQUIP.

 

 

PRODUCTION

5355.51

24630.00

EXPORT

2669.28

12276.00

INSTRUMENTATION & STRATEGIC EC.

 

 

PRODUCTION

4257.45

19580.00

EXPORT

913.24

4200.00

ELECTRONIC COMPONENTS

 

 

PRODUCTION

2391.82

11000.00

EXPORT

2283.11

10500.00

COMPUTER HARDWARE

 

 

PRODUCTION

2933.25

13490.00

EXPORT

358.77

1650.00

 

 

 

TOTAL (A)

 

 

PRODUCTION

20589.26

94690.00

EXPORT

6789.74

31226.00

 

 

 

EXPORT Vs PRODUCTION

32.98

B . COMPUTER SOFTWARE

 

 

PRODUCTION

61983.91

285064.00

EXPORT

49539.90

227834.00

 

 

 

EXPORT Vs PRODUCTION

79.92

 

 

 

TOTAL (A+B)

 

 

PRODUCTION

82573.17

379754.00

EXPORT

56329.64

259060.00

 

 

 

EXPORT Vs PRODUCTION

68.22

 

 

 

Average Exchange Rate 1 US$ = 45.99

 

NOTE : Production figures of Electronic Hardware Panels Source :
Published figures of MIT in their annual report.

 

 

 
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