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THE SOFTWARE &

ELECTRONICS INDUSTY IN
SOFTWARE INDUSTRY
• The Indian software industry truly symbolizes
India’s strength in the knowledge based
economy. Highly skilled human resources
coupled with low wage structure and world
class quality have transformed India into a
global powerhouse in the Information
Technology (IT) software services and solutions
sectors
OUTLINE
• The Indian Software Industry has grown from
a mere US $ 150 million in 1991-92 to a
staggering US $ 5.7 billion in 1999-2000.
• Indian Software Industry is estimated to be
worth USD 1.2 billion.
• According to statistics, country's software
exports reached total revenues of Rs 46100
crores.
• As of the year 2006-07, both software and
services revenue grew by 32 percent to $ 22
OPPORTUNITES
• Strong cost value proposition, driven by the low cost of
quality manpower and high quality work delivery.
• India has a large base of English speaking, skilled
manpower resource with experience on state-of-the-art
hardware and software platforms. This is supported by
a flourishing IT education market, producing high
quality software professionals across different areas in
the field.
• The government has announced software export sector
tax incentives-setting up of STPs and a VC funds.
• India has a well developed infrastructure support to aid
connectivity and data transfers.
POLICY INTIATIVES
• Besides Special Economic Zones (SEZs) and Export
Promotion Zones (EPZs), the government is
encouraging the setting up of Software Technology
Parks (STPs).
• STPs offer zero import duty on the import of all capital
goods, special 10 years income tax rebates, availability
of infrastructure facilities such as high-speed data
communication links, etc.
• Foreign companies can set-up operations in these zones
either through incorporation of the company as per
Indian Companies Act (with 100% equity holding).
GROWTH
EXPORTS
SOFTWARE INDUSTRY
LANDMARKS

THERE ARE COMPANIES LIKE -:


• TATA CONSULTANCY SERVICES – Asia’s
largest software company .
• WIPRO
• INFOSYS – Also known for its Exports
• NASSCOM -
(Tata Consultancy Services and Infosys have emerged as the
leading Indian software exporters during 2000-01, clocking
exports worth Rs 2,870.26 crore and Rs 1,852.94 crore,
respectively.)
NASSCOM
• The National Association of Software and
Services Companies (NASSCOM), the Indian
chamber of commerce is a consortium that serves
as an interface to the Indian software industry and
Indian BPO industry.
• Set up in 1988 to facilitate business and trade in software
and services and to encourage advancement of research in
software technology. It is a not-for-profit organization.
ELECTRONICS INDUSTRY
• THE ELECTRONIC INDUSTRY BEGAIN ITS
RACE IN THE EARLY 1960’s.
• DUE TO RAPID DEVELOPMENT IN THE
1990’s – GROWTH OF 30% WAS RECORDED.
• ELECTRONICS OUTPUT INCREASED BY
15%, 17%, 7.8%, 7.4% and 22.4% in 2002, 2003,
2004, 2005 and 2006,
RESPECTIVELY.
• REACHED 13.6% BY 2008.
PRODUCTION
OVERVIEW
• Electronics Hardware is a US$15-billion (2006-07)
industry in India
– India constitutes 0.7% of the global market
– Consumer electronics (TV, DVD, Audio systems):
about US$4.5 billion
– Industrial electronics: about US$2.4 billion
– Computers (PC, Servers, Laptops): about US$2.9
billion
– Communication and Broadcast equipment: about
US$2.2 billion
– Strategic electronics: about US$1.0 billion
STRUCTURE
• Indian industry caters primarily to the domestic
market. Exports are limited to passive components
like capacitors, resistors, wound components, CD-
ROMs, colour picture tubes, etc.
– Major international players like Nokia,
Motorola, Siemens, Texas Instruments, LG,
Samsung, Sharp and Lenovo have already set
up manufacturing operations in India; many
more have R&D centers
EXPORTS
• The Electronics Hardware industry is
expected to grow rapidly in the coming
years
– Projected US$62 billion in 2010
– 44% GROWTH in domestic consumption (FY
2007-FY 2010)
– Rapid growth in exports S
H
O
W
A
• ELCINA Electronic Industries Association of
India (Formerly Electronic Component Industries
Association) was established in 1967 .
• ELCINA has always remained committed to the
promotion of electronics manufacturing culture in
the country focusing on components-the building
blocks of electronics industry.
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• a) India remains a major importer of electronic
materials, around $20 billion (Rs84,000 crore
now) in 2007.
• In the case of exports, the largest share was taken
by electronic components, with 47% of total
electronic exports. Exports of electronic
components have grown at a CAGR of 25% in the
last five years.
• g) India’s main destination for electronic goods is
the US.
THANK
YOU

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