IT Exports to Touch $68 Billion in FY12.

The growth in IT software and services exports from India would pick up in the next financial year. It has slackened this fiscal due to the fragile economic conditions still prevailing in many nations, according to DK Sareen, Electronics and Computer Software Export Promotion Council executive director.

Software and services exports are expected to touch $68 billion compared to $57 billion last financial year. The software exports, as of December 2011, were $50 billion. The hardware exports could go up to $9.2 billion and has already achieved 80 per cent of it. India’s exports of software and services and electronic hardware are expected to grow 22 per cent in rupee terms, down from the upto 40 per cent that were clocked in the past years.

“The growth rate would have been better if global economic scenario had been better,” he said.

Importantly, domestic companies are reducing their dependence on the US market and are focused on Latin America and Africa and other emerging markets. India’s exports to US are likely to reduce from 58 per cent last fiscal to 56 per cent this year.

Japan, where the Indian IT and software exports are barely three percent, could be a focus for Indian companies, he said adding that Japan compares with the European Union market in terms of IT demand.

“The growth data coming from the US now is encouraging and we are getting vibes that there can be a remarkable turnaround of the economy by mid 2012,” said its chairman S Radhakrishnan.

The council, which has incubation facilities to encourage SMEs in the US, South Africa and Middle East, will soon open a centre in Europe, he said.

The council will conduct Indiasoft, an IT industry event in Hyderabad in March. It will stress on innovation and value addition to software solutions and about 200 Indian IT firms will showcase their solutions.

Source : mydigitalfc.com