Country's total IT exports registered around 12% growth last year
India's computer hardware exports to the Middle East jumped more than 300 per cent during the last five years, according to the latest data.
The regional market ranked top in terms of India's computer hardware exports destination in fiscal year 2012-13 compared to previous year. The country's fiscal year starts from April of each year and ends in March next year.
India's major items of computer hardware exports to the region are personal computers, smart cards, disc drives, monitors, scanners, printers, keyboards, mouse, networking equipment etc.
"The region is one of the fastest growing Information and Communications Technology (ICT) markets in the world for Indian exporters. That's the reason hardware exports to the region increased more than three-fold from $42 million in 2008-09 to $171 million in 2012-13," Kamal Vachani, regional director of the Electronics and Computer Software Export Promotion Council, or ESC, for the Middle East, told Khaleej Times during a recent interview.
Regional countries maintained their position as the top destination for India's export of computer hardware during 2012-13, showing a seven per cent increase over last year's $160 million exports, according to Vachani. India's total export of computer hardware registered a growth of more than 53 per cent to $438 million during the year 2011-12 over the year 2010-11 that recorded $285 million exports.
The country's production of computer hardware has been growing at an annual average growth rate of three per cent during the past five years. The production increased by 4.6 per cent to $3.438 billion in the year 2011-12 compared to $3.286 billion in the year 2010-11.
The ESC is India's premier trade promotion association for the electronics and computer software sector. It's an autonomous organisation under the Department of Information Technology, Ministry of Communications and Information Technology, Government of India.
Vachani said the council contributes around 18 per cent of India's total exports, and by far one of the largest councils to do so. He mentioned that India's exports of software and related services to the Middle East reached $1.85 billion during 2012-13 while electronics exports to the region stood at $1.67 billion.
India's total IT exports registered around 12 per cent growth last year and it's expected that at least same level will be maintained this year despite economic issues in Europe and other countries. The country's total hardware, software, and services exports are projected to touch $84 billion by the end of fiscal year 2013-14 over last fiscal year.
Middle Eastern countries account for nearly five per cent of the total exports of Indian electronics goods, software and IT services and there is huge potential to make it at least 10 per cent in the next two years, according to Vachani. The region is expected to contribute nearly $4.2 billion by the end of current fiscal year and $8.4 billion in the next two years, he added.
According to the latest data available, Indian exports of electronic goods, computer software and IT services to the UAE increased by $1.84 billion, or 140.65 per cent, in fiscal year 2011-12, compared to $857 million in 2009-10.
Export of computer software and services registered a growth of more than 18 per cent to $68.02 billion during the year 2011-12 compare to $57.61billion in the year 2010-11.
With the objective of enhancing bilateral trade in the field of computer software and services, ESC keeps its members busy in organising big exhibitions in India and also participating in information technology shows in other parts of the world, according to Vachani.
At Gitex Technology Week 2013 in Dubai, which concluded last month, 38 Indian electronics and IT-related companies participated under ESC.
Talking about the event, he said: "ESC brings companies every year to the Gitex and it was another successful participation. Indian participants expect some business deals in coming months."
Vachani said relations between India and the Middle Eastern countries are very old and strong and that's the reason trade ties are also growing year-on-year.
The UAE was India's top trading partner in 2012-13 with total trade of $75.45 billion including India' exports of $36.32 billion. Latest data shows that during April-June period of 2013 India's total trade with the UAE reached $16.66 billion including $7.39 billion exports.