| BANGALORE: India’s software exports grew by an impressive 65 per
cent during the third quarter of 2000-01, according to the National Association of
Software and Services Companies (Nasscom). Projecting a positive outlook for the Indian
software industry, Nasscom said exports during the period touched Rs 7,160 crore as
against Rs 4,345 crore for the corresponding period in 1999-2000. Nasscom has projected
that for fiscal 2000-01, software exports will earn revenues in the region of Rs 28,500
crore ($6.24 billion) as against export revenues of Rs 17,150 crore ($4 billion) earned
during 1999-2000.
Commenting on the ongoing speculation of the impact of the US economic slowdown on the
Indian software exports, Nasscom president Dewang Mehta said, "In the last few weeks
there has been talk of the slowdown in the US economy and its possible effects on Indian
software exports. We have been speaking to our member companies, analysts and major
clients and based on our discussion we expect no slowdown whatsoever and are confident of
meeting our export target of $6.24 billion during 2000–01 and $9.5 billion in 2001-
02."
"A cut in IT expenditure could even increase the quantum of outsourcing to India
as that will help US companies improve their productivity and positively impact their
bottomline," Mehta argued.
According to Mehta, communication software has emerged as a major opportunity for
Indian software exports. During 2000-01, he expects India to earn revenues of at least Rs
4,100 crore ($900 million) from the export of communication software, representing an
almost 100 per cent jump from the revenues earned last year.
Nasscom has initiated a study to continuously monitor changing patterns in IT
expenditure in target countries, said a release. The nodal agency for the software
industry has announced a five-point agenda to ensure that software exports continue to
grow at a rate of more then 50 per cent. These are:
- Increase quality and quantity of knowledge workers: At least one IIT/IIIT in every state
during Tenth Five Year Plan; increased industry funding and participation.
- Create world-class telecom infrastructure: Ensuring provision of at least 10 Gbps of
international bandwidth by the end of 2001 and at least 2.5 Gbps of national Internet
backbone within the country; Reduction in tariff for national connectivity and removal of
procedural hassles.
- Enhancement of physical infrastructure: Building international airports and better roads
to facilitate trade; scheduling of daily international flights to important business hubs
like Bangalore, Hyderabad, Ahmedabad and Pune.
- Tapping opportunity in communication software and original technology space: Corner
large share of the global communications software market; position India as a developer of
bleeding edge original technology; more spending on R&D in Indian software companies.
- Continued government support: No additional incentives required but no withdrawals
either; Removal of procedural obstacles.
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