Electronics hardware production up 12.1 % in 2008-09

Electronics hardware production in India registered a growth of 12.1 per cent in 2008-09 while Information Technology (IT) and IT-enabled services (ITeS) exports grew by 16.6 per cent during the year despite the global economic downturn.

Union Minister of Communications & IT A Raja told the parliamentary consultative committee attached to his ministry here yesterday evening that, however, both segments had slowed down from the levels of 27.8 per cent and 29.4 per cent growth, respectively, achieved in 2007-08.

He said production of electronics hardware had gone up 43 per cent from Rs. 66,000 crore in 2006-07, Rs. 94,690 crore in 2008-09. IT and ITeS exports had grown by about 50 per cent from $ 31.3 billion to $ 47.1 billion in the same period.

Mr Raja informed the members of Parliament that a Task Force was set up by the Department of IT to suggest measures and strategies to augment the growth of IT and ITeS and the electronics hardware manufacturing industry in the context of global developments.

The Task Force, in its report, had recommended, among other things, fiscal/financial incentives; establishment of a "National Electronics Mission", promotion of human resource and talent development; promotion of existing clusters and creation of new ones; creation of R&D and manufacturing value addition fund and fostering of a sustainable ecosystem for innovation and R&D; demand consolidation; building of world class business and social infrastructure; and creation of a favourable business policy and regulatory environment

The report projected that the electronics hardware production in the country would grow from $ 20 billion in 2009, including exports of $ 4 billion, to $ 80 billion by 2020.

The IT/ ITeS sector is expected to grow from $ 59.9 billion 2009 to $ 225 billion by 2020 with exports growing from $ 47.1 billion to $ 175 billion by 2020.

In the IT/ITeS sector, the employment generation (direct and indirect) is projected to grow from 10.2 million in 2009 to 30 million by 2020 and in electronics hardware sector it is projected to grow from 4.4 million in 2009 to 27.8 million by 2020.

The contribution of IT/ITeS industry to the GDP can reach almost 10 per cent from existing level of 5 per cent by 2020 and the electronics hardware sector has the potential to contribute about 20 per cent to the GDP by 2020, it said.

Responding to the suggstions of the members, Union Minister of State for Communications & IT Sachin Pilot said the Ministry had taken steps to facilitate the growth of teh IT sector in semi-urban and rural areas. He said the State Governments were bieng persuaded to take pro-active measures in this direction so that the benefits of the IT revolution accrude evenly to all parts of the country.

Mr Raja also said that the States which had adopted pro-active policies had witnessed significant growth in the IT sector. The other States needed to adopt similar strategies, he added.

NNN