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Wednesday, April 26, 2006

India Intelligence Report

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IT Exports Up 36%

 

Increased global reach of Information Technology (IT), strong demand for qualified human resources, and strong investments by IT companies saw India exporting over USD 22.5 billion worth of software and services up 36% from last year. The Indian industry is aimed to export USD 50 billion by 2008-09.

Karnataka exported the most with 37% of total exports followed by Maharashtra at 15% and Tamil Nadu at 13%. Andhra Pradesh grew the fastest registering 51% growth. Except for communist-dominant Kerala where growth was only 10%, all other states including Haryana, Delhi, Uttar Pradesh, West Bengal, and Orissa registered smart gains. More than 6000 units are registered of which more than 4200 units are focused on exports.

 

While the Government is gloating over huge successes in the software segment, it is very concerned with the languishing hardware industry. It has constituted a high-power committee to explore ways to boost hardware. At the most basic level, personal computer adoption is at only 14 per thousand and the Government wants to bring this number to 85 per thousand by 2009. If this goal is to be implemented, the number of PCs needs to be increased from 4.3 million to 28 million by 2009. 

While this may be a great low hanging fruit to aspire, there needs to be broader and deeper focus on just PC manufacturing but encouraging value-added products that facilitate testing, components for larger products, intelligent industrial components, Application Specific Integrated Circuit (ASIC) development, and Field Programmable Gate Array development is important for India to move up the food chain.

 

 



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