After its success in attracting global software companies to India, the country is all out to woo global hardware majors to relocate manufacturing and designing to India.
To this end, three countries -- South Korea, Japan and the United States -- have been identified.
"Relocation of manufacturing and designing facility is one of the major strategy that we are working on. We expect results of this to be seen in the next year," said D K Sareen, executive director, Electronics and Software Exports Promotion Council.
As a part of this strategy, the country's hardware sector would hold roadshows in these markets on a continuous basis.
In the case of hardware also, cost and quality manpower would be the main selling points.
"We are not asking this countries to set up manufacturing facilities for the domestic market. Companies can look at India as a manufacturing hub and service the local market from India," he said.
The strategy would also include convincing the global majors to source components from India as well as sub contracting manufacturing to Indian companies.
"Companies around the world are looking at ways to reduce cost of manufacturing. India offers a very cost effective destination with a high quality manpower. If companies can outsource core technology development, they can also look at outsourcing hardware manufacturing as well," Sareen said.
He also said that many companies have shown interest in relocating design and manufacturing activities to India.
"Companies are interested in moving to India. We are expecting some positive development to happen soon," he said.
Some of the Indian companies are already servicing the global companies by selling hardware components and finished goods to them.
Besides, some of the multinational hardware manufacturers are also selling to the neighbouring markets.
India's software exports may be hogging the limelight but hardware exports from the company is also picking up.
According to the latest estimates the hardware exports from the country has grown over 17 per cent in 2001-02 to reach Rs 5,800 crore (Rs 58 billion) and is targeting $10 billion by 2008.
ESC also projects that the hardware exports from the country to grow at about 15 per cent in the current fiscal.
The electronic hardware exports from the country was Rs 2,600 crore (Rs 26 billion) in 1999-2000, Rs 4,788 crore (Rs 47.88 billion) in 2000-01.
"We are seeing a steady growth in hardware exports. It has taken some hit due to the global economic slump. It is expected to pick up with global companies also looking at India as a design and manufacturing hub," Sareen said.
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