India

Information and Communication Technologies Sector Review

Definition and scale of sector

Why the sector was chosen in the West Midlands

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Creating next generation technologies - A Report from IBEF - December 2007

In the 1990s, few countries took notice of India’s potential to emerge as a dominant player in the Information Technology (IT) sector. By 2007, the Indian IT industry registered record revenues of $39.6 billion. The key to this success has been innovation.

Since the beginning, the Indian IT industry has shown tremendous innovation quotient, both in the services space and product domain. This innovative approach has now prompted the National Association of Software & Services Companies (Nasscom), the premier trade body of the Indian IT industry, to forecast $50 billion revenue in a couple of years.

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Source: India Brand Equity Foundation (IBEF)

On the path of Innovation - December 2007

When Discovery Channel recently aired the ‘Daily Planet Goes to India’, it not only showcased to the world India’s growing prowess as a centre for innovation, but also brought to focus the innovative products from the country’s research and development stable. The series focused on both grassroots and top-end innovation. Indians have been innovators since the beginning of civilisation.

Experts attribute the growth of India’s innovation quotient to various factors, including the innate abilities of its people, the vast opportunities that are available in the country, and the role played by the government inpromoting indigenous and products.

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Source:  India Brand Equity Foundation (IBEF)

 A Blue Chip Biz - December 2007

When Nokia, the world’s leading mobile phone handset maker, set up a plant in 2006 near Chennai, the capital of the south Indian state of Tamil Nadu, it not only raised many an eye-brow in the electronics industry, but spawned a new era of manufacturing trend in the country.
Almost a year down the line, Nokia acknowledged that production of electronic goods in Chennai was cheaper than in Shenzhen, China, the traditional manufacturing hub, preferred by well-known original equipment manufacturers (OEMs).
India has catapulted to the world league in semiconductor manufacturing.

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Source: India Brand Equity Form (IBEF)

Global handset hub - November 2007

The pace of growth of the rapidly expanding Indian telecom industry continues to enthrall everyone. With six million subscribers being added every month and the subscriber base growing at a rate 82.2 per cent per annum, this is one country no handset manufacturer can afford to take eyes off.

The fact that the country has the lowest telecom tariffs in the world and that the sub-$100 handsets are the most in demand hasn’t deterred anyone and the world’s largest handset manufacturing companies are here trying to carve out as large a market share as they can.

Source: India Brand Equity Foundation (IBEF)

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Information Technology - Overview from IBEF - July 2007

India has emerged as the fastest growing IT hub in the world, its growth dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.

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Source: India Brand Equity Foundation (IBEF)

IT Enabled Services - Overview from IBEF - July 2007

India's sunshine sector, ITeS, continues to chart double-digit growth. It has recorded revenues of US$ 39.6 billion in 2006-07, up 30.7 per cent against a projected growth of 27 per cent, according to the National Association of Software Services Companies (Nasscom). With growth in the sector being stupendous, the average increase in salary levels in the ITeS sector has been between 16 and 18 per cent.

The industry body has projected a revenue of US$ 49-50 billion in 2007-08 at a growth rate of 24-27 per cent. Of the US$ 50-billion revenue projected for FY08, Nasscom estimates that ITeS/BPO exports will contribute between US$ 10.5-11 billion. The domestic market is expected to reach US$ 10 billion at a growth rate of 20-22 per cent.

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Source: India Brand Equity Foundation (IBEF) 

Research and Development - Overview from IBEF - July 2007

India is fast emerging as the global research and development (R&D) hub of the world. In the past ten years the country has moved from a peripheral position in knowledge and technology sectors to being at the core of the continuous flow of people, ideas and technologies around the world. In 2006 alone, for example, 100 of the world's top R&D companies employed more than 15,000 scientists in India.

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Source: India Brand Equity Foundation (IBEF)

Telecommunication - Overview from IBEF - July 2007 

One of the fastest growing sectors in the country, telecommunications has been zooming up the growth curve at a feverish pace in the past few years. The year 2007 saw India achieve the distinction of having the world's lowest call rates (2-3 US cents), the fastest growth in the number of subscribers (15.31 million in 4 months), the fastest sale of a million mobile phones (1 week), the world's cheapest mobile handset (US$ 17.2) and the world's most affordable colour phone (US$ 27.42).

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Source: India Brand Equity Foundation (IBEF)

Opportunity in India - June 2007

India is an obvious “potential” market for any UK company considering exports. But it is important that it is seen as a very sophisticated market. It has a middle class of 300 million people who want access to all the products common to the UK High Street.  They may not yet have the purchasing power to buy at UK prices, but they do have the capability to enter into partnerships to produce locally at local prices. 

This report highlights on the opportunities and expressed need in Indian Economy for all these trade clusters:

• Information Communication Technologies (telecom)
• Transport Technologies (aviation, automotive, infrastructure)
• Medical Technologies (biotech & pharmaceuticals; healthcare)
• Business Professional Services (education & training, insurance, tariffs
• Tourism and Leisure (heritage & restoration, travel and tourism)
• Food and Drink
• Screen, Image and Sound (media)

The above highlights serve to illustrate the fact that India is ready to do business in almost every sector. It is a market, which is set to continuing growing for at least another 30 years as a result of its own demography. 

Source: UK Trade and Investment

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Country report on the Indian electronics sector - May 2007

Electronics and IT hardware manufacturing in India grew by 15.6% in 2004–05 against an 8.5% growth in overall manufacturing. Total hardware production was Rs 56,000 crore (around $12.73 billion) in 2005–06 registering an annual growth of around 12%. But this growth rate may not be adequate to meet the increasing demand-supply gap and opportunities that lie ahead. Despite being amongst India’s fastest growing industry sectors, integration with the global manufacturing chain has been sluggish.

Source: Asia Eco-Design Electronics

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Communications Sector Review From UKTI - August 2006

The Indian telecommunication network with more than 130mn telephone connections, is the fifth largest in the world and is the second largest among the emerging economies of Asia. Today it is the fastest growing market in the world and represents unique opportunities for UK companies in the stagnant global scenario. Tele-density, which was languishing at 2% in 1999, has shown an impressive jump to 12% by end of 2005 and is set to increase to 20% in the next five years beating the govt target by three years.

Private operators have made mobile telephony the fastest growing (YOY growth of > 70 %.) in India. With more than 85 million users (both CDMA and GSM), wireless is the principal growth engine of the Indian telecom industry and has already surpassed fixed line subscribers in early 2005. Intense competition between the four main private groups - Bharti, Hutch, Tata and Reliance and state incumbents-BSNL and MTNL has resultant in a significant drop in tariffs. There has been a drop of almost 74% in cell phone charges, 70% in ILD calls and 25% in NLD charges, resulted in a boom time for consumers. India now offers cheapest mobile tariffs in the world. The next revolution is expected to be in the area of Broadband(>256 KBPS download) where the government expects a YOY growth of more than 100 %. With the reduction in bandwidth prices and computer hardware prices brought below the magical Rs 10,000 (£ 120) the set target looks very achievable. India today also offers the cheapest Internet connection in the world.

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Source: UK Trade and Investment

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