Demand of cables is also reducing. Only the silver lining is the production of optical fiber cables which increased from Rs 446 cr in 2006-07 to Rs 534 cr in 2007-08 and is further expected to increase to Rs. 609 cr in 2008-09.

Q5: So the growth comes mainly from the wireless manufacturing sector.

A: Yes, it is true. Wireless equipment manufacturing including cellular mobile phones has registered the highest growth where the production has gone up from Rs 10,545 cr in 2006-07 to Rs. 28,600 cr, recording a 171% growth. However this year the expected production from the wireless equipment market including cellular phones is estimated to be Rs 41,650 cr, with a growth rate of 46%.