Top export sector for India market


Did you know?

Increasing efficiency of Indian businesses will cause a surge in the demand for computers?



Did you know?

IBM, Digital, Hewlett Packard, Silicon Graphics, Compaq, Dell are just some of the foreign computer giants doing business in India.


Computer Hardware Market data
(in US$ million)
Computer Hardware 1995 1996 1997*
Total market size
940
1372
1920
Locally manufactured
1920
1086
1472
Total exports
177
221
287
Total imports
350
507
735
Exchange rate: US$1 =Rs.
32.75
34.95
35.00
Source: Independent studies
*1997 figures are estimates

 
Promising sub-sectors
1997* market size (US$ mn)
Computers
770
Data-acquisition systems
480
Peripherals, accessories
480

Points to be noted:

  • The Indian computer hardware industry has growing at a rate of over 30 per cent annually for the past few years and this pace is expected to be maintained until 2002.

  • As the first table above shows, domestic manufacture has been increasing, but so also have imports. The locally manufactured computers cater to low-end applications while the imported computers continue to facilitate CAD, CAM, CASE, multi-media, and other high-end applications.

  • Indian computer hardware and peripherals industry segments are dominated by U.S. joint ventures and suppliers. IBM in collaboration with Tatas, Hewlett Packard in association with HCL Limited, Digital Equipment Corporation with Hinditron Group, Silicon Graphics with Tatas, (just to mention four major joint ventures) manufacture computer hardware for the domestic and export markets. Compaq, Silicon Graphics, and Dell have opened offices to sell their computers in India. Sun Microsystems and Apple distribute their products through Wipro Information Technology
    Limited.

  • Most business firms in India have not computerised. Many of those who have, still use outdated products such as dot-matrix printers instead of laser and ink-jet printers.

  • As more and more international companies set up office in India, the demand for hardware will increase.

  • The growing awareness of the case to shed fat in the public sector will call for more automated operations; this too will generate demand for computers.

The prospects for both exports to, and investment in, this sector are excellent.

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