Software exports to soar in 2003-04

KOLKATA: India's software exports are likely to surge over 30 percent on a year-on-year basis in the year to March 2004 because of a likely pick-up in the U.S. economy next year, an industry body said. India's software and allied exports, which bank on a growing pool of low-paid engineers and English-speaking graduates, rose 29 percent on a year-on-year basis to about $7.5 billion in the year to March 2002.

The industry expects 30 percent growth in 2002/03 (April-March). "We are cautiously optimistic about recording a higher (than 30 percent) growth in the next financial year because of a rebound in the U.S. economy," said Kiran Karnik, Nasscom President, told Reuters on the sidelines of an industry seminar.

The U.S. economy was jolted after the September 11 attacks last year. U.S. clients account for more than 60 percent of India's software exports. "The performance in the first half indicates that we're on track of achieving the 30 percent growth target set for this financial year," Karnik said, without giving details.

Last month, Michael Melenovsky, senior Vice-President at IDC, told Reuters that India's software services sector, which has made low costs its competitive advantage, would gain the benefits of an outsourcing windfall as more and more global firms moved to cut spending. Nasscom has said that India's software and allied exports would zoom to $57 billion by 2008.

© Reuters