The recession in the US, the principal market for the Indian IT/ITeS industry, is likely to take its toll on Indian IT exports. According to the Electronics & Computer Software Export Promotion Council (ESC), IT exports have already been hit in the April-September period and are likely to grow at 20-22% at best this fiscal, compared to the 35% growth achieved in 2007-08. ESC has about 2,300 Indian IT and BPO companies under its fold and accounts for nearly 95% of the country’s electronics and IT exports valued at $48.2 billion in 2007-08. The council has now set a revised IT export target of $58 billion for this fiscal. It has also started lobbying with the Centre to dole out special incentives to the domestic IT industry to tide over the bad time.
“IT export growth has slid in the first six months of this year to 22% and we estimate that it might grow at best by 20% in the second half. We are taking stock of the situation and actively promoting a market diversification strategy for the Indian companies. The target markets now should be Africa, Latin America and the Asean nations,” ESC executive director DK Sareen told ET. Mr Sareen said ESC has started discussions with the union IT and finance ministries to extend the Software Technology Parks of India (STPI) scheme and provide 100% income tax exemption for software and hardware exports. The STPI scheme is due to expire on March 31, 2010.
“If both the demands are implemented, it will provide respite to the IT companies hit hard by external factors, especially the SMEs,” he said.
ESC has also decided to set up six export facilitation and business support centre over the next two years in the US, France and South Africa. These centres, set up under the Market Access Initiative (MAI) programme of the union commerce ministry will provide an incubation and market access platform for the Indian IT companies, especially the SMEs. It has recently set up one such centre in the US.
“We plan to set up at least two more such centres by March 2009 in the US and looking at Virginia and Los Angeles for such opportunities. We have also identified Durban and two places in France for such centres. The IT companies in these foreign locations are keen to outsource their projects to India and even enter into joint-venture with the Indian companies,” said Mr Sareen.
ESC will host the ninth edition of its global IT networking event, Indiasoft, in Kolkata between February 26-27, 2009. The partner state for this year’s event will be West Bengal. Around 200 software and services buyers from over 50 countries are expected to take part in the event and interact with the 100-odd exhibitors. This is the first time the event will be held in Kolkata.
Contributed By:
Prof. Amit Dey
(Globsyn Business School)
Source: The Economic Times
“IT export growth has slid in the first six months of this year to 22% and we estimate that it might grow at best by 20% in the second half. We are taking stock of the situation and actively promoting a market diversification strategy for the Indian companies. The target markets now should be Africa, Latin America and the Asean nations,” ESC executive director DK Sareen told ET. Mr Sareen said ESC has started discussions with the union IT and finance ministries to extend the Software Technology Parks of India (STPI) scheme and provide 100% income tax exemption for software and hardware exports. The STPI scheme is due to expire on March 31, 2010.
“If both the demands are implemented, it will provide respite to the IT companies hit hard by external factors, especially the SMEs,” he said.
ESC has also decided to set up six export facilitation and business support centre over the next two years in the US, France and South Africa. These centres, set up under the Market Access Initiative (MAI) programme of the union commerce ministry will provide an incubation and market access platform for the Indian IT companies, especially the SMEs. It has recently set up one such centre in the US.
“We plan to set up at least two more such centres by March 2009 in the US and looking at Virginia and Los Angeles for such opportunities. We have also identified Durban and two places in France for such centres. The IT companies in these foreign locations are keen to outsource their projects to India and even enter into joint-venture with the Indian companies,” said Mr Sareen.
ESC will host the ninth edition of its global IT networking event, Indiasoft, in Kolkata between February 26-27, 2009. The partner state for this year’s event will be West Bengal. Around 200 software and services buyers from over 50 countries are expected to take part in the event and interact with the 100-odd exhibitors. This is the first time the event will be held in Kolkata.
Contributed By:
Prof. Amit Dey
(Globsyn Business School)
Source: The Economic Times
No comments:
Post a Comment