US Top Destination for Electronics Hardware Exports Also-ESC

US Top Destination for Electronics Hardware Exports Also-ESC

Karnataka Emulates Software Success Story in Hardware As Well

New Delhi July 2, 2007 The US was the major destination for India’s electronics hardware exports during 2005-06 accounting for a market share of 26.78 per cent, according to the information compiled by the Electronics and Computer Software Export Promotion Council (ESC). This information is contained in the Statistical Year Book for 2005-06 released by the Council.

” Top ranking of US as an export destination for electronics hardware is significant for 2005-06 since that country is the major importer of Indian computer software, accounting for over 60 per cent of the export share. India can up the market share of electronics hardware exports considerably in view of the huge and expanding market in that country for this segment. ESC is constantly monitoring the export performance of the IT exports in general to the US in view of the rupee hardening and consequent fall in the rupee realization for unit exports,” says Mr D K Sareen, Executive Director, ESC.

ESC says that in 2005-06, electronics hardware export to US in 2005-06 was Rs 2578 crore (US $ 582 million) of the total export of Rs 2683 (US$ 606 million) to the North American Region. This is 96 per cent of the total exports to region. Significantly, exports to the region have moved up by 32.56 per cent in rupee terms (34.45 per cent in dollar terms) in 2005-06 as compared to the previous year. During 2006-07, ESC expects export share in dollar terms to go up significantly in view of the hardening of rupee.

According to ESC total export of electronics hardware exports for the year 2005-06 stood at Rs 9625 core (US$ 2174 million) as against Rs 8000 crore (US$ 1782 million) in the previous year. Significantly, the percentage increase in 2005-06 over 2005-06 in value terms was 20 per cent in rupee terms (22 per cent in dollar terms)

Singapore clocked the second in the electronics hardware exports from the country in 2005-06 registering a market share of 9.33 per cent at Rs 898 crore (US$ 203 million), followed by Germany (Rs 746 crore), Hong Kong (Rs 737 crore), United Arab Emirates (Rs 579 crore) and United Kingdom (Rs 492 crore).

ESC analysis points out that the top items of electronics hardware exports included un-interrupted power (UPS), color TVs, CD recordables, memory cards, picture tubes, medical equipment, optical fibre cables etc. The State of Karnataka is India’s top exporter of electronics hardware export. In value terms, export of electronics hardware from Karnataka has increased from Rs 2600 crore (US$ 579 million) in 2004-05 to Rs 2930 crore (US$ 662 million) in 2005-6. Export from Karnataka accounts for a share of 30.4 per cent. The other major States contributing to India’s export of electronics hardware are Maharatra (28 per cent) and Uttar Pradesh ( 25.51 per cent)