Karnataka IT export growth dips from 23% to 1.4%

Karnataka IT export growth dips from 23% to 1.4%
Pradeesh Chandran, Bangalore, August 7, DH News Service:

At a time when the State government is trying to lure more investments in information technology (IT) industry and when the industry is raking in large profits, software exports from Karnataka is far from satisfactory.

According to data compiled by STPI (Software Technolgy Parks of India) and State IT department, in the last financial year (FY 2009-10), software exports from Karnataka was at about Rs 76,000 crore as against Rs 74,929 crore in 2008-09, registering a growth of just about 1.4 per cent. This is a sharp drop from 23 per cent growth in IT exports in 2008-09 over previous year. Even national growth in software exports in 2009-10 was estimated at 5.5 per cent by Nasscom. This includes export from about 1,200 STPI units and 71 SEZ units in the State and it accounts for about 30 per cent of its national share. However, another data available with the State IT department said the share of exports from SEZ during FY 2009-10 was Rs 8,000 crore as against Rs 4,500 crore during 2008-09.

During the period 2009-10, 100 new IT companies were registered in the State including 77 in STP and 23 SEZ units. Out 77 STP units 34 are foreign equity holding companies which is lower compared to previous year. Thirty-nine small and medium enterprises were also started during the period.