Top export sector for India


Did you know?

India's telephone density is only 1.2 per 100 people. That shows the potential in the telecom market.


Internet Services

 Electronic & Computer Software Export Promotion Council

National Taskforce on Information Technology & Software Development


Telecom equipment & services market data

(in US$ million)

Telecom equipment & services

1995

1996

1997*

Total market size

2,754

3,276

4,196

Locally manufactured 1,983 2,293 2,727
Total exports nil nil nil
Total imports 771 983 1,469
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)

Switching and transmission equipment

2,700

Value-adding services

550

VSATs

450

Points to note:

  • On October 7, 1998, the government of India threw open the Internet Service Providing industry to private (domestic and foreign) sector. This ends the monopoly of the state-owned VSNL (Videsh Sanchar Nigam Limited).

  • Private companies have been allowed to establish their own gateways in addition to using the gateways of DoT, VSNL or authorised public / government organisations. But this concept is only in principle because the Government has set up an inter-ministerial committee which will first go into security-related issues before granting permission to ISPs to set up alternate international gateways. Till then subscribers to ISPs will have to grapple with the problem of congestion facing existing Internet subscribers unless the VSNL dramatically increases the number of access nodes.

  • India's telephone density is approximately 1.2 per 100 people. This is well below not only Western levels but also below that of many Asian countries. So, the potential is enormous.

  • This is one sector in which India either has no, or negligible exports, but the gap between domestic production and demand is rapidly expanding as seen in the first table above. This is being filled by imports.

This is therefore a sector with enormous scope for exports to India.


Internet Services
Electronic & Computer Software Export Promotion Council
National Taskforce on Information Technology & Software Development
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