IT, electronics output up 10.4% in 2009-10 .

New Delhi, April 11 The IT and electronics production in India increased by an estimated 10.4 per cent during 2009-10 – the growth rate less than half the previous year's level – as global downturn dented the performance of mainstay software sector.

According to the Department of IT (DIT) figures, the production of computers and software; consumer, strategic and industrial electronics; communications and broadcast equipment; and hi-tech components all taken together grossed Rs 4.11 lakh crore in FY10, against Rs 3.72 lakh crore during the previous fiscal. The domestic electronics and IT production had registered nearly 26 per cent growth in FY09 compared with FY08.

While overall production showed an increase in value terms for the fiscal ended March 2010, its pace of growth has slowed down notably due to adverse impact of the global recession on software exports. The Indian industry is now aspiring for a significantly higher growth rate in hi-tech production.

Meanwhile, software and services exports continue to dominate the industry profile – it accounted for 57 per cent of the total revenue aggregate in FY10, according to the annual report. For 2009-10, the software exports are an estimated $49.7 billion (Rs 2.35 lakh crore) compared with $47.1 billion (Rs 2.16 lakh crore) during the previous fiscal.

This works out to an estimated growth of 8.7 per cent in rupee terms and 5.5 per cent in dollar terms, in line with the annual dollar forecast given out by the software association Nasscom. The domestic software production stands at about Rs 66,200 crore, about 12 per cent higher than the previous fiscal.

The production figure for computers is at an estimated Rs 14,430 crore (7 per cent growth), while communications and broadcasting sector logged an estimated Rs 31,390 crore (18 per cent growth).

In consumer electronics and industrial electronics sub-segments, production values were Rs 30,150 crore and Rs 13,630 crore respectively during 2009-10. For the record, consumer electronics production formed over a quarter of the total electronics hardware manufacturing in the country.

DIT said that reviving consumer sentiments, a strong demand for consumer durables, and the stimulus package propped up the performance of this segment, leading to an 18 per cent growth. Within this industry, the colour TV segment was the largest contributor, its growth catalysed by upsurge in the LCD TV sales.

Source : Business Line