India's IT exports breaches $10-B mark despite challenges
Thursday, 03 June 2004, 19:30 IST
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NEW DELHI: India's money spinning IT sector crossed the crucial $10 billion mark in exports in fiscal 2003-04 despite an outsourcing backlash in the West and sharp currency volatility, said an industry body Thursday. IT exports recorded a 30.5 percent growth in the year ended March 31, touching revenues of $12.5 billion over $9.6 billion logged in the previous year, said the National Association of Software and Service Companies (Nasscom). The industry managed to post highest growth in the fiscal year 2003-04 since a technology industry meltdown badly mauled local companies in 2001. Of the total exports earnings in the fiscal 2003-04, IT services market grew by 25 percent to touch $8.9 billion while the booming business process outsourcing (BPO) market expanded by a robust 46 percent to clock revenues of $3.6 billion. "Despite the challenges such as slow growth of IT spending globally, jobless recovery in major markets, rupee appreciation, the software industry has been able to maintain its growth momentum," said Jerry Rao, chairman of Nasscom. "Overall, 2003-04 has been a good year and we are looking forward to a good year again. You will see the emergence of more and more billion dollar Indian software companies," Rao told a press conference here. According to Nasscom, the Indian software industry, including domestic market, grew by 28.2 percent in the fiscal 2003-04 to $15.9 billion, up from $12.4 billion in the previous year. While US continues to be the top export destination for Indian software companies by accounting for 70 percent of total exports in 2003-04, Britain's share remained unchanged at 15 percent. The industry lobby group said the local firms were now beginning to get a strong foothold in new geographical regions such as Japan, Germany and France. The Indian IT sector exports software and services to 112 countries around the globe. "The performance of the Indian software industry in 2003-04 once again demonstrates the tremendous value that the companies are providing to their customers in terms of quality and productivity," said Kiran Karnik, president of Nasscom. "The domestic IT industry is among the top 10 industries in India now. The industry is witnessing a transition phase and evolving in terms of delivery models, service offerings, industry composition, and market reach," he said. Looking ahead, Karnik said the government would have to focus on removing bottlenecks in areas like urban mass transport system, airports and telecom to ensure robust growth in the years ahead.
Source: IANS
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