Software exports set to grow 60%

Software exports set to grow 60%
ENS ECONOMIC BUREAU

MUMBAI, FEB 1: Software exports from the country, which achieved over 50 per cent of growth over the last few years, are expected to show a 60 per cent rise next year.

According to Dewang Mehta, President, National Association of Software Companies (Nasscom), software exports are expected to touch Rs 27,500 crore ($ 6.2 billion) in 2000-01 as against Rs 17,000 crore ($ 3.9 billion) projected for the current year, posting about 62 per cent growth.

Indian IT industry, including exports, would grow by about 55 per cent to Rs 38,500 crore ($ 8.85 billion next year with domestic market expected to grow by 40.55 per cent to Rs 11,000 crore ($ 2.53 billion) during the year, Mehta told newsmen on the eve of the `Nasscom 2000@India' expo starting on Wednesday.

This growth trend in exports and domestic markets have belied the fears that the Indian IT industry, particularly software sector, was mainly dependent on Y2K related projects, Mehta added, stating that the future holds good for the growth of domestic ITindustry, he said that it was expected to be of the size of Rs 1,61,000 crore ($ 37 billion) by 2008 by when software exports are expected to cross the $ 50 billion (Rs 217,500 crore) mark.

The international expo and conference `Nasscom 2000@India' was aimed at providing impetus to India's efforts in moving up the value chain in IT services and in creation of technologyin high growth areas such as e-commerce and IT enabled services, he added. The event has three components - international conference, expo and e-summit (on DOT.coms), he said.

IT COS TO MAINTAIN TEMPO: INDIA's booming computer software firms beat earnings forecasts for the quarter ended December 31 and are expected to maintain the momentum in the near term, analysts said on Tuesday. "The results have been very strong," said Yeshwant Kini, analyst at SG Asia Securities (India). Many analysts had predicted that the firms would report reduced earnings growth. "There were a lot of fears of a slowdown in this quarter due to reduced spending onsoftware services before the Year 2000 changeover, but it has been a very strong quarter," Kini said.