Electronic goods exports double in last five years

The export of electronic components has registered a growth of 200 per cent between 1997-98 and 2002-03 as multinational companies are increasingly outsourcing their manufacture to India, according to estimate of the Electronics and Computer Software Export promotion Council (ESC).

"In absolute terms, electronics exports have touched Rs 2,400 crore. Importantly, between 1997-98 and 2002-03, exports have, on an average, grown 24.57 per cent annually (18.41 per cent in dollar terms). This is a reasonably good performance and gives rise to the hope that given proper encouragement and support, electronic components can be the main driver in pushing electronic hardware exports," DK Sareen, executive director, ESC, said.

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

In absolute terms, India exported Rs 1,002 crore in 2002-03 compared with Rs 676 crore in the previous year, registering an increase of 48 per cent in the value of goods exported.

The second largest export destination for these goods was Singapore, Hong Kong and neighbouring countries, with a total export turnover of Rs 562 crore. They accounted for a market share of 23 per cent.

In 2002-03, exports to the region were up 21 per cent from the previous year's Rs 462 crore.

Sareen said electronic component exports to the US and Canada slipped one rank to the third spot. The export turnover in this region came down to Rs 405 crore in 2002-03, 32 per cent less than the previous year.

"ESC is looking at the reasons for the slide in the North American market and will suggest measures for consolidating the Indian presence in that growing market," he added.

Major items that are being exported to various destinations under this head include recordable CDs, solar cells, colour picture tubes, unpopulated printed circuit boards, ferrite, connectors, other semi-conductor devices, transformers for electronic equipment, resistors etc.