Nasscom hopeful of hitting $60 Bn export target by 2010

By siliconindia   |   Saturday, 19 January 2008, 17:36 IST
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Kolkata: Rupee appreciation does not seem to harm Indian IT exports. Since the companies are adopting mechanisms that will reduce their dependency on dollar based earnings, Nasscom believes that the Indian IT industry will be able to meet the export targets of $60 billion by the year 2010. Nasscom president Som Mittal said the industry is now shifting focus away from the U.S. market. "Currently around 65 percent of the total revenues are dollar-denominated, but this will get reduced over time. In fact, we are bullish that the IT export target of $40 billion for 2007-08 will also be met," he said. Nasscom is also hopeful that the government will extend the Software Technology Parks of India (STPI) scheme in the forthcoming union Budget. "We have met the union finance minister P Chidambaram and sought extension of STPI which is due to lapse in 2009. We expect the budget will address the issue since the extension will ensure growth of the small and medium IT enterprises in the country," said Mittal. Exports of the country's software and IT-enabled service industry rose 33 percent to $31.4 billion in 2006-07 while revenues including domestic business rose 31 percent to $40 billion. Led by IT behemoths Tata Consultancy Services (TCS), Infosys Technologies, Wipro and Satyam, the top 20 services firms accounted for 60 to 70 percent of the industry's revenue growth as well as profitability. In July last year, Nasscom had said that the revenues of software and services is likely to zoom by 24 to 27 percent to reach the $ 50 billion mark.