Precipitous fall in IT exports growth

Software exports from Karnataka likely to touch Rs. 56,000 crore

Laiqh A. Khan

Software exports fall short of expected figure

Rs. 3,100-cr. worth hardware exports in 2007-08

MYSORE: Software exports from Karnataka are expected to register a moderate increase of around 16 per cent during the year 2007-08 to touch Rs 56,000 crore.

Disclosing this to The Hindu, outgoing Director of Software Technology Parks of India (STPI) J. Parathasarathy, said the annual software exports from Karnataka had increased by around Rs. 8,000 crore during the last financial year compared to 2006-07.

“These are tentative figures. The final results will be announced after the annual performance report of all the companies registered with STPI are received,” said Mr. Parthasarathy on his last working day as director, Bangalore. He has been transferred as STPI Director, Noida.

Referring to the depreciation of the dollar during the last financial year, Mr. Parthasarathy said the returns from software exported from the State could have been higher had the rupee not appreciated against the dollar.

Nevertheless, he said the State would continue to maintain the top slot in software exports in the country.

Though the growth rate of software exports from Karnataka had dipped from around 36 per cent last year to about 16 per cent this year, Mr. Parthasarathy has said that that the growth in terms of percentage declines when the base figure rises. “An increase of about Rs. 8,000 crore in a year would have accounted for a much higher figure in terms of percentage when the quantum of software exported was less,” he said.
Growth path

Software exports from Karnataka had increased from Rs. 27,600 crore during 2004-05 to Rs. 37,000 crore during 2005-06, registering a rise of 37.6 per cent.

After software exports rose by another 36 per cent to reach Rs. 47,600 crore during 2006-07, the then IT Secretary, M.N. Vidyashankar, had predicted that software exports would reach Rs. 70,000 crore during 2007-08. But his predictions had fallen short by almost Rs. 14,000 crore.

Meanwhile, Karnataka is expected to export hardware products to the tune of Rs. 3,100 crore during 2007-08. “The total IT exports from Karnataka, including software and hardware, would cross Rs. 60,000 crore during the year,” he said. Mr. Parthasarathy also said that the State had added 122 new software companies during the last year, taking the total number of software firms in the State to above 2,000. About 112 out of the 122 new software companies have set up shop in Bangalore, he said.