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Indian IT finds new markets in Europe, Japan, Middle East
Wednesday, 28 May 2003, 19:30 IST
NEW DELHI: India's IT software and services exports are finding new markets in Europe, Japan and the Middle East even as the share of the U.S. is dipping, according to a leading industry body.
Figures compiled by state-owned Electronics and Computer Export Promotion Council (ESC) indicate that North America's share in India's exports of computer software and related services has dipped from 64.19 percent in 2001-02 to 61.03 percent in 2002-03.
India exported over $7 billion worth of computer software and services exports during fiscal 2002-03 that ended March.
North America remained the major destination, accounting for 
283.78 billion ($5.84 billion) in 2002-03 against 234.28 billion ($4.91 billion) in the previous year, an increase of 21 percent in rupee terms or 18.88 percent in dollar terms.
"Overall, North American market share in India's IT software and services has declined by 4.92 percent," said ESC executive director D.K. Sareen in a statement Tuesday.
"This augurs well for India as there is a clear indication of the emergence of alternative markets in Europe, Japan, Middle East and African countries, which is imperative to hedge the risk of putting everything in the U.S. market. Substantive gains in alternative markets are turning points in India's IT exports," said Sareen.
The ESC estimates show that exports to Europe rose 33.82 percent in 2002-03 to touch 114.49 billion ($2.35 billion) from 85.55 billion ($1.79 billion) in the previous year. The market share of Indian IT products in the European Union have gone up by 5.03 percent.
In the case of Japan, Korea and other Far East countries, Indian exports have gone up by 13.45 percent in value terms in 2002-03. In absolute terms, exports have picked up from 15.18 billion ($318 million) in 2001-02 to 17.22 billion ($354 million) in 2002-03.
"The Middle East market has also picked by leaps and bounds, registering a growth of over 200 percent in value terms during 2002-03. The other destinations that have registered growth in exports in value terms are African countries (232 percent), Australia and other Oceanic countries like New Zealand and Fiji (43 percent) and Europe," said Sareen.
The ESC has further stepped up efforts to diversify the market for IT exports.
"The strategies being deployed to gain market access vary from country to country. For instance, the 'Language Related Market Access Initiative' in Japanese market was an instant success with more and more professionals and entrepreneurs learning Japanese language," said Sareen.
ESC hopes to replicate these successful models in other emerging markets like Germany.
Efforts are also being made to tap markets in Latin America, the Middle East and Africa by conducting road shows and other promotional activities, Sareen added.
Source: IANS
283.78 billion ($5.84 billion) in 2002-03 against 234.28 billion ($4.91 billion) in the previous year, an increase of 21 percent in rupee terms or 18.88 percent in dollar terms.
"Overall, North American market share in India's IT software and services has declined by 4.92 percent," said ESC executive director D.K. Sareen in a statement Tuesday.
"This augurs well for India as there is a clear indication of the emergence of alternative markets in Europe, Japan, Middle East and African countries, which is imperative to hedge the risk of putting everything in the U.S. market. Substantive gains in alternative markets are turning points in India's IT exports," said Sareen.
The ESC estimates show that exports to Europe rose 33.82 percent in 2002-03 to touch 114.49 billion ($2.35 billion) from 85.55 billion ($1.79 billion) in the previous year. The market share of Indian IT products in the European Union have gone up by 5.03 percent.
In the case of Japan, Korea and other Far East countries, Indian exports have gone up by 13.45 percent in value terms in 2002-03. In absolute terms, exports have picked up from 15.18 billion ($318 million) in 2001-02 to 17.22 billion ($354 million) in 2002-03.
"The Middle East market has also picked by leaps and bounds, registering a growth of over 200 percent in value terms during 2002-03. The other destinations that have registered growth in exports in value terms are African countries (232 percent), Australia and other Oceanic countries like New Zealand and Fiji (43 percent) and Europe," said Sareen.
The ESC has further stepped up efforts to diversify the market for IT exports.
"The strategies being deployed to gain market access vary from country to country. For instance, the 'Language Related Market Access Initiative' in Japanese market was an instant success with more and more professionals and entrepreneurs learning Japanese language," said Sareen.
ESC hopes to replicate these successful models in other emerging markets like Germany.
Efforts are also being made to tap markets in Latin America, the Middle East and Africa by conducting road shows and other promotional activities, Sareen added.
Source: IANS