Bangalore remains top IT exporter

TECHPOWER - Bangalore remains top IT exporter

Hindustan Times


OVERCOMING HASSLES in terms of inadequate infrastructure in this silicon hub and consequent feuds with the previous Congress-led coalition in Karnataka, the state’s IT industry has retained its numero uno position as the top exporter with a projected figure of Rs 37,000 crore during the current fiscal.

Disclosing the industry’s performance on Friday, Secretary of Department of IT and BT M K Shankarlinge Gowda told newsmen that Karnataka would account for about 37 per cent share of the country’s total IT exports, which has been estimated by NASSCOM to be about Rs 100,000 crore by the end of the current fiscal.

“Karnataka remains ahead of other states in maintaining its growth rate in IT exports. The state’s IT firms are expected to achieve a year-on-year (YoY) export growth rate of 34 per cent during the current fiscal with Rs 37,000 crore as against Rs 27,600 crore in the last fiscal. In 2003-04, the exports were to the tune of Rs 18, 100 crore,” Gowda said.

During the first three quarters of 2005-06, 135 new IT companies were added in the state compared to 125 in the same period of the previous year, pointing at an average, four companies setting up shop here every week. The number of IT-ITeS companies registered in Bangalore stood at 1,658, of which 1,120 were operational.

Gowda said, “35,000 IT and ITeS jobs were added between April and December in Karnataka, and the current quarter was expected to add 10,000 more.” During the first three quarters of the current fiscal, IT exports generated Rs 25,200 crore against Rs 19,400 crore in the same period last fiscal.

“Continent wise, North America continues to be the dominant market for IT exports from the state, accounting for about 60 per cent, followed by Europe with 25 per cent, Asia five per cent, Japan four per cent and rest of the world six per cent,” Gowda said.

Sector wise, enterprise appli cation accounted for 47 per cent of the total exports from Karnataka till December 31, 2005, while technology software contributed 36 per cent, ITES/BPO 15 per cent and others two per cent.

Gowda said, “An international realty consultant has rated Bangalore as the third largest city in the world after Tokyo and London to have sold about 9.5 million sq ft commercial space for IT and ITES.” In terms of investment by domestic and overseas IT companies, the state is projected to attract Rs 2,600 crore by the end of current fiscal as against Rs 2,290 crore by the end of the last fiscal. Investment from 100 per cent foreign equity companies is estimated to be Rs 1,800 crore in the current fiscal as against Rs 1,607 crore last year.