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Kolkata, Nov. 30

EVEN as India's earnings from IT exports have been pegged at $24 billion in 2005-06, the ramp-up in hardware exports can be possible only if there is a greater focus on niche areas such as optical media, contract manufacturing, embedded software and a hardware-software combination. .

Mr Nalin Kohli, Chairman of ESC, said this at a news conference held here on Wednesday to mark the launch of the West Bengal State Committee of the Electronics and Computer Software Export Promotion Council (ESC). In 2004-05, India's hardware exports stood at $1.8 billion, while software exports in the same year were valued at $17.2 billion, he added.

It would be necessary to make qualitative changes in the policy framework on hardware production and exports to increase the share of the hardware component in India's total IT exports.

In this regard, Mr Kohli said the duties on raw materials must be cut by at least 2-3 years before duties on finished products are reduced. He said export of hardware should be encouraged, especially from port-based cities such as Kolkata.

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(This article was published in the Business Line print edition dated December 1, 2005)
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