India Pakistan Trade Unit

Significant national growth and historic regional growth.
Significant presence in software especially in southern part of regional round Coventry, Solihull, Warwick.
Recent successes in hardware but from a low base.
Significant mobile investment opportunities.
Incubation opportunities associated with region's universities around photonics and nano-technology.

Communications Sector Review from UKTI

Communications Industry in India

India continues to be one of the fastest growing telecom markets in the world. Sweeping reforms introduced by successive Indian governments over the last decade have dramatically changed the nature of telecommunications in the country. The industry has shown year on year growth of 20 % with mobile services segment showing an impressive compounded annual growth rate of more than 50%. Fixed-line subscribers and broadband services, although not as spectacular as mobiles, continue to show solid growth. Some of the key statistics of the industry are:

Tele density: 9 as of March 2005. Analysts predict Tele-density of 15 by 2008
Subscribers - 100mn+ subscribers : Mobile 55 mn + (GSM 78% and CDMA 22 %); fixed 45 mn + subscribers
Rural Tele- density : increased from 0.4 in 1999 to 1.7 in March 2005
Tariffs: On average, mobile tariffs have dropped by 35 % and ILD tariffs by 25 % during 2004-2005. India now offers cheapest mobile tariffs in the world

Key growth statistics in the Indian Telecom Landscape

Communications services revenue grew by 16 %, Cellular by 63 % and Fixed access declined by 1%
Mobile subscribers :18 mn new adds (52 % YOY growth); 63 % YOY revenue growth
quipment capex is at 3 Bn USD, grew by 69 % over last year, predominantly driven by wireless
Telecom Software revenue grew by 43 %
Broadband Services - Total subscriber base of 1 million.

All this makes India one of the most exciting markets for communications services and equipment in the world.

The attached sector report gives an overview and characteristics of the communications sector in India, with details of opportunities, relevant trade publications/website and trade associations in the market. The report also lists the various methods of doing business in India along with key UK Trade and Investment contacts for the market.

Software and Computer Service Sector Review from UKTI

At over 30% per annum, the Indian Software and Computer Services industry is the one of the fastest growing sectors of the Indian economy.

In the year 2004 - 05, the total revenues of the industry crossed US$ 22 billion of which $ 17. 2 billion came from exports. The sector contributes about 3.4% to the Indian GDP, a fifth to India's export earnings and employees more than 1 million people directly.

In 2004-05, according to Gartner, the domestic market grew at an impressive 26.7%, according to Gartner, making India the fastest growing ICT market in Asia - Pacific

The attached report gives an overview and characteristics of the Software & Computer Services sector in India, with details of opportunities, relevant trade publication and trade contacts in the market.

IT Sector Review from Asia Invest

India's information technology sector is a unique example of a developing country's global competitiveness in a high-technology domain. India has several characteristics of developing economies, especially low teledensity and IT penetration in the domestic economy. With a total installation of less than 6 million PCs, less than 2 million Internet connections and less than 1 Gbps of data transmission capacity and a telephone density of 3.2 per hundred persons, India's Infotech record has been extra ordinary, compared to all its other business sectors:

From a fledgling level of US$43.5 million in 1990, the sector notched up revenues of around US$11 billion in 2000-01, representing nearly 3% of India's GDP. Exports accounted for US$5.8 billion, a major engine of growth for the Union's InfoTech industry.
India today ranks as the most competitive supplier of skilled information technology professionals and is the preferred supplier of software solutions to the developed world led by the US.
In 2000, 185 of the Fortune 500 companies out-sourced software requirements to India.
Of the 32 companies world-wide having SEI/CMM Level 5 certification - the highest quality standard in software, 16 are Indian companies.
Indian companies have earned credibility in delivering to mission-critical requirements, following the success-ful implementation of Y2K and Euro conversion solutions.

Telecommunications Sector Review from Asia Invest

India's telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. The National Telecom Policy, initially formulated in 1991 and substantially amended in 1994 and in 1999, has been the driving force of development and liberalisation in the sector. The current regulatory environment allows the entry of pri-vate companies in all areas of telecom services and equip-ment manufacturing, except international long distance communications and strategic communication. Important developments of the 1990s have been:

Entry of the private sector (including foreign investment) into the equipment manufacture;
Progressive liberalisation of imports, and a reduced im-port tariff of 5% on capital goods;
Private sector participation (including limited foreign equi-ty) in basic and value added services on a licensing model;
Reductions in long distance tariffs;
Setting up of an autonomous regulatory authority; and
Corporatisation of government-owned monopoly entities.

Since the initial formulation of the Telecom Policy in 1991, the telecom landscape has grown substantially in the past ten years to include a range of services.

Fixed line voice services: local, national, international, pay phones, voice mail and home direct
Fixed line Non-voice: Telegraph services, telex, ISDN, leased line circuits and packet switched data networks
Value-added services: Mobile telephony, radio paging, VSAT, Internet, videoconferencing, INMARSAT and in telligent networks.

As a result, the sector has been growing by more than 20% since 1996, despite a recessionary trend in overall industrial

Technology Market in India from IBPN

Sector Overview (India)

India has made huge strides in the technology sector. India's IT and ITES sector have played a major role in India becoming one of the fastest growing economies in the world. Its vast pool of science graduates, engineers, and software professionals provide India with a strong advantage. Along with IT, India has also made remarkable progress in other technology areas like Bio-technology and research. India is the second-largest telecom market after China; and with 48 million wireless customers in just about 10 years since the emergence of wireless telephony in the country, it has emerged as the fastest growing wireless market, which is now adding more than 2 million connections each month.

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