Indian consumer electronics find good demand in Middle East

Monday, 08 December 2003, 20:30 IST
Printer Print Email Email
NEW DELHI: Led by a 31 percent growth in the Middle East, India's consumer electronics exports are estimated to have crossed 7.5 billion ($155 million) in 2002-03 to record a 7.14 percent overall growth. India has now set a target of 10 percent growth during 2003-04 for consumer electronics products like clocks and watches, public address systems, colour televisions, video recording or reproducing apparatus, black and white televisions, electronic calculators, electronics flashlights, recorded CDs and radio communication receivers. "Countries in the Middle East continued to be the major destination for the export of consumer electronics, accounting for 36 percent of total goods exported to various destinations," D.K. Sareen, executive director of the Electronics and Computer Software Export Promotion Council (ESC), said Monday. "Importantly, in value terms, exports to this region have grown by 31 percent during 2002-03, as compared to the previous year," Sareen said in a statement. Analyses by the state-run body, which promotes exports of computer software and electronics hardware, including telecom equipment, consumer electronics and instruments, have revealed good overseas demand for Indian electronics goods. Between 1997-98 and 2002-03, the export of consumer electronics goods has grown over 100 percent, the studies have revealed. In absolute terms, exports have grown from 3.7 billion ($99 million) in 1997-98 to 7.5 billion ($155 million) in 2002-03. "This is a good trend and can be further consolidated in coming years since wages in most consumer electronics goods producing centres like Singapore, Japan and South Korea are getting overheated," Sareen said. India's second largest destination for consumer electronics exports during 2002-03 was Singapore, Hong Kong and other Southeast countries. This region accounted for 29 percent of the total exports of consumer electronics. In absolute terms, consumer electronics exports to the region have grown from 1.9 billion ($40 million) in 2001-02 to 2.17 billion ($45 million) in 2002-03, registering a growth of 14 percent. The European Union, with an export share of 1.25 billion ($26 million), has emerged as the third highest market for Indian consumer electronics. In fact, India's exports to this region have increased by 111 percent in 2002-03 from 590 million ($12 million) in 2001-02. Significantly, the market share of the US and Canada in India's consumer electronics exports is estimated to have dropped by 53 percent in 2002-03 as compared to the previous year, the ESC studies have revealed. Exports to this region came down to 650 million ($13 million) in 2002-03 against an all-time high of 1.38 billion ($29 million) in the previous year. "The council is analysing the reasons for the slide in exports to this region with the objective of taking corrective steps since the market for consumer electronics, especially in the US, is expanding and countries like Japan, South Korea and Singapore are sharing the market," said Sareen. "This is possibly an area that India can focus on since it has the expertise to supply embedded software, which goes into consumer electronics." With the imposition of anti-dumping duties on Chinese consumer electronics by the US administration, exports from China into the US are likely to be affected considerably. This has raised optimism of greater Indian penetration into the US market. The other major destinations for exports during 2002-03 were African countries with a share of 290 million and Japan, South Korea and other Far East countries, 160 million.
Source: IANS