The Times of India THURSDAY, JANUARY 31, 2002
Nasscom sees $50 bn software exports from India REUTERS WEDNESDAY, JANUARY 30, 2002 GENEVA: The head of India's top software industry body on Wednesday said European growth would drive up the country's export revenues from software and services by 30-35 per cent per year, valuing the export industry at $50 billion by 2008. Phiroz Vandrevala, Chairman of India's National Association of Software and Service Companies (Nasscom), told journalists the industry was sticking to a prediction of 34 per cent average annual growth between 1998 and 2008. "We believe that by the year 2008, India will be a $50 billion software export industry," he said, adding that in the financial year to end March 2001, the industry exported around $6 billion. "At this point in time... there seems to be no reason for us to revise our target. Clearly a 30-35 per cent compound annual average growth rate in the remaining seven years of our vision is achievable and sustainable." The industry is expected to grow by around 30 per cent in the year to March 2002 -- a relatively poor performance. "That is lower than the 45-50 per cent that we recorded consecutively for the last four to five years... but a 30 per cent growth rate in the current global economic climate is something to be extremely proud of," Vandrevala said. The industry has earmarked Europe as its fastest-growing market and expects Europe's share of revenues to rise to 26 per cent in the year to March 2002 from 24 per cent last year. "Internally within the industry we have set a target that by the year 2004/2005, we would like to see at least 30 per cent of our revenues coming from Europe," Vandrevala said. "For European corporations to be globally competitive, they have to source from the most competitive locations. That process is beginning to happen and that gives us the confidence that the European market will continue to grow," he said. India had not suffered too much from a slowdown in the North American market, which traditionally accounts for around 65 per cent of revenues, he said. "We are affected because as the global spending in IT slowed down, our share has slowed down, but at the same time a very large number of significant US corporations that previously did not do any work with India are now looking at India. "In the long term we believe the economic pressure will give us significant benefits," he said. Copyright © 2002 Times Internet Limited. All rights reserved.
