Outsourcing trend ups electronic components exports

Monday, 29 December 2003, 08:00 Hrs
Printer Print Email Email
NEW DELHI: Riding mostly on the back of increased outsourcing by multinational companies, Indian electronic components have witnessed very high growth in the last five years.

"The export of electronic components has registered a growth of 200 percent between 1997-98 and 2002-03, riding mostly on the back of increased outsourcing by multinational companies," the Electronics and Computer Software Export Promotion Council (ESC) said in a statement.

"In absolute terms, electronics exports have touched 24 billion. Importantly, between 1997-98 and 2002-03, exports have grown on an average by 24.57 percent annually (18.41 percent in dollar terms)," said D. K Sareen, executive director of ESC.

Of the total exports, the share of electronic components was 10.02 billion in 2002-03 as against 6.76 billion in the previous year, marking an increase of 48 percent, ESC said.

Major components being exported include recordable CDs, solar cells, colour picture tubes, unpopulated printed circuit boards, ferrite connectors, other semi conductor devices and transformers for electronic equipment.

Leading exporters of components include Moser Baer India Ltd, Tata BP Solar India Ltd, Samtel Color Ltd, AT&S India Pvt Ltd, Hical Magnetics, Vishay Components, EPCOS Ferrites, Automotive Wiring Systems, Bharat Electronics and Continental Device.

Given proper encouragement and support, electronics components could be the main driver in pushing electronic hardware exports, said Sareen.

According to ESC estimates, European Union countries were the largest destination for component exports during 2002-03, accounting for 42 percent of the total quantum.

The second largest export destination was the region comprising Singapore, Hong Kong and neighbouring countries, with a total export turnover of 5.62 billion, accounting for a market share of 23 percent.

This region has upped its export turnover by 21 percent in 2002-03 compared to 4.62 billion in the previous year.

Electronic components exported to the US and Canada slipped one rung to the third position and their market share came down by 32 percent in 2002-03 to 4.05 billion.

"ESC is looking at the reasons for the slide down in the North American market to consolidate Indian presence in that growing market," said Sareen.

The Middle East countries, with an export turnover of 1.81 billion, have emerged as the fourth largest destination for Indian components, accounting for 7.5 percent of total exports.

Other important markets are Japan, Korea and other neighbouring countries, which have accounted for five percent of the total exports at 1.12 billion in 2002-03.



Source: IANS
SPOTLIGHT
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..