Step up electronics hardware growth from 2% to 10%

New Delhi, January 30: | Updated: Jan 31 2002, 05:30am hrs
The medium term export strategy 2002-07 has recommended stepping up growth in the electronics hardware sector to a compounded annual rate (CAGR) of about 10 per cent in the next 5 years from the current level of 2.12 per cent.

According to the strategy, hardware exports are likely to grow to $5 billion by 2005 and $10 billion by 2008 while the PC penetration is likely to grow from 6 per 1000 to 20 per 1000 by 2005.

It has also suggested an increase in focus on the US and the European markets besides south-east Asia.

The strategy also suggests that the customs duty on all imported parts and components should be brought to nil, especially items of dual usage.

The special economic zone (SEZ) model for IT hardware is in itself a solution along with the new provisions.

The new provisions include relaxation of minimum area specification for SEZs in hardware, holiday time for implementing net foreign exchange conditions and minimum of 5 per cent export performance obligation for over five years.

India’s share in world IT trade of about $1 trillion is about 1 per cent and the IT accounts for less than 1 per cent of the GDP.