68 pc jump in software exports

8220;Inspite of slowdown in overall exports from the country, software exports have managed to keep this growth rate. No other country in the world has succeeded to have a growth rate of 50 per cent to 60 per cent in software exports continuously for the last seven years,8221; he said.

As per Nasscom survey, a major opportunity exists in IT enabled services segment. In 1998 alone, this emerging industry, employed more than 23,000 people. It is expected that by the year 2008, IT enabled services would provide jobs to about 1.1 million peopleand generate revenues close to 18 billion, both for export and the domestic market. In the next few years, India may emerge as a global leader in IT enabled services, added Mehta.

The study also indicates that due to increased government spending towards IT in the domestic market, as well as increase in sale of PCs, the domestic software market will fetch a record revenue of almost Rs 8,200 crore in 1999-2000. This would be almost a record 57 per cent increase in the domestic market.

The survey indicates that for the fiscal year 1999-2000, software exports from India may cross Rs 17,500 crore, or 4 billion. Therefore, 1999 may witness yet another year of unprecedented growth of 60 per cent of software exports from the country. Nasscom expects annual software exports of 50 billion from India in 2008.

The total revenues of the Indian software industry for the year ending March 31, 1998 was estimated at Rs 10,040 crore. In 1997-98, software exports grossed revenues of Rs 6,530 crore up from Rs 3,900crore in 1996-97, while the domestic software market grossed revenue of Rs 3,510 crore up from Rs 2410 crore in 1996-97.

Pointing out that during 1998, more than 158 of the Fortune 500 companies outsourced their software requirements to India, he urged the government to quickly implement many of the pending recommendations of the national IT task force.

Suggesting a five-point agenda to the finance minister as its budget proposals, Nasscom has sought removal of procedural obstacles and has suggested immediate implementation of norms for Employee Stock Option Plan ESOP. It has also demanded written assurance that service tax is not applicable on computer software development activities 8220;so that excise officials do not unnecessarily send demand notices to software companies.8221;

8220;Income tax should be made applicable only at the time of sale of stock and not at the time of stock option offer,8221; Mehta said.

In order to promote indigenous software products and packages development, Nasscom hasrequested extending the benefit of Section 35 2AB of Income Tax Act for 133 per cent income tax deduction for Ramp;D activity in computer software. A 10-year tax holiday should be extended in the case of units at EoUs, EPZs and STPs instead of present five years, Mehta added.

Among the activities planned for this year, Nasscom would hold business seminars in USA, Europe, Japan, South Africa, Australia and West Asia. It plans to publish a directory providing details of Euro currency solution providers from India. A major participation in the form of India pavilion at CeBIT8217;99 Fair at Hannover, Germany is also on the cards with as many as 23 companies as compared to 14 last year.

A series of business networking seminars in London, Frankfurt, Brussels, Amsterdam, Luxembourg, Rome, Lisbon, Madrid and participation at EU-India Partenariat8217;99 scheduled to be held in the capital in March are also slated.