With the withdrawal of Software Technology Parks of India (STPI) scheme last year, the SMEs lack incentive and are yearning for IT benefits on par with SEZs.

"SMEs need help in the form of tax benefits and we are demanding that the benefits enjoyed by big firms in SEZs be extended to them," ESC executive director D.K. Sareen told reporters here on Monday.

He felt that such benefits would give a big boost to the exports by SMEs. According to him, 80 per cent of the IT exports are contributed by top 200 companies while the remaining 20 per cent are contributed by 2,300 firms.

The government of India-sponsored organization is positive on its outlook for the next financial year. "With the positive indications from the US, the IT industry can look forward for healthier growth," he said.

"We are on a springboard. We have great resources, manpower, physical infrastructure, ideas and all other required ingredients," he added.

The ESC expects 22.47 per cent growth in IT exports during 2011-12. The total exports are projected at $77 billion. Of this, $68 billion will be computer software and services and $9.2 billion electronic hardware. By December, 2011, the country had achieved 70 per cent and 80 per cent targets in software and hardware respectively.

In rupee terms, the growth in electronic hardware is expected to be 10 per cent and in software 24.38 per cent.

The IT exports during 2010-11 were $66 billion, comprising $8.86 billion hardware and $57.61 billion software.

The United States continued to be the biggest market for Indian IT exports though its share has come down to 56 per cent from the earlier 62 per cent. European Union is the second biggest market, accounting for 22 per cent exports.

Sareen said Japan, which is the second largest software market, accounts for only three per cent exports from India and hence there is tremendous potential for growth. He also sees huge potential for promoting exports to other emerging markets like Africa, which currently accounts for four to five per cent exports.