Software exports jump by 84 pc

“The present growth results from major decisions taken by the government on issues relating to reduction of international telecom and leased line tariff, ADR/GDR linked stock option scheme and recognition of video software exports.”

Naqvi said analyses of major export destinations show 18 newcountries of software export were added, taking the total number of countries of export to 66 and indicating a 26 per cent growth rate in market diversification.

Exports to the most important market of North America (the United States and Canada) increased from $ 1.03 billion (Rs 3,880 crore) with 57 per cent market share in 1997-98 to $ 1.8 billion (Rs 7,490 crore) with 60 per cent in 1998-99. In value terms, increase of software exports to North America over the last year is 93 per cent.

Similarly, the export share to second largest market of Europe has also increased from $ 475 million (Rs 1,783 crore) with a 26 per cent share during 1997-98 to $ 891 million (Rs 3,700 crore) with a 30 per cent share during 1998-99. In value terms, the increase of software exports to Europe over last year is 107 per cent.

There is also a significant development in estimated software exports to African countries that has increased from $ 19 million (Rs 71 crore) with a 1.05 per cent share during 1997-98 to $ 51 billion(Rs 215 crore) with a 1.72 per cent during 1998-99. In value terms, the increase in software exports to African countries over last year is 201 per cent.

The analysis also shows that the market diversification initiatives of ESC have shown promising results in our exports to Latin America (Rs 15 crore), Australia and other Oceanic countries (Rs 200 crore) and even Russia CIS countries have logged a significant increase from Rs one crore in 1997-98 to Rs 35 crore during 1998-99.

Tata Consultancy Services, HCL Computing Ltd, Pentafour Software and Exports Ltd, NIIT Ltd, Infosys Technologies Ltd and Satyam Computer Services Ltd are among some of the leading software exporters during 1998-99. The total export of electronics hardware is estimated at $ 596 million (Rs 2,475 crore) during 1998-99 which however is a downslide of 18 per cent when compared with the performance during 1997-98. This is largely due to the technological changes characteristic of this fast moving sector, restructuring and recessionaryconditions prevailing in some of the overseas markets.

On the front of electronics hardware exports, the sector that has shown good performance during 1998-99 is the area of consumer electronics having recorded a 31 per cent growth performance over the previous year. Exports of consumer electronic items is estimated to be $ 211 million (Rs 850 crore) during the year 1998-99 compared with $ 160 million (Rs 600 crore) last year.

Consumer electronics exports of items like wall clocks, calculators, watches, telephones, televisions and audio compact discs, meeting ISO 9000 Standards, has enabled India to emerge as a world class sourcing country in the ranks of other competitors in Southeast Asia like South Korea, Taiwan, Malaysia and Singapore, Naqvi said.

The export of electronic components has also recorded a growth of 12.5 per cent in rupee terms during the fiscal year 1998-99 and is estimated to be $ 217 million (Rs 900 crore) compared with $ 213 million (Rs 800 crore) in 1997-98.

Major items ofelectronics hardware exports include semi-conductor devices, VCR/VCP, colour televisions, ferrites, picture tubes, monitors, printed circuit boards, connectors, telephone instruments, pagers, public address systems, scanners, watches and clocks besides transmission apparatus.

BPL Ltd, Kalyani Sharp India Ltd, Motorala India Ltd, Samtel Color Ltd, Moser Baer India Ltd and Sony India Pvt ltd are among some of the leading exporters in the electronic hardware sector during 1998-99.

Telecom services and project export registered a marginal growth of 7.69 per cent in rupee terms during the year 1998-99 compared to last year. In value terms, the export touched a figure of $ 675 million (Rs 2,800 crore) compared with $ 693 million (Rs 2,600 crore) in the year 1997-98.

Major companies of export in this category include TCIL, VSNL, VXL Engineers Ltd, CMS Computers Ltd. And Bharat Electronics Ltd.

Adding that the next millennium will belong to the small and medium exporters of India, Naqvi said the emergence ofelectronic commerce within the ambit of Internet will provide new business opportunities for small and medium exporters especially in the Information Technology (IT) enabled services, the current market size of which is estimated at $ 750 billion is double the size of the software and services market.

ESC has already signed 17 MoUs with counterpart organisations in the countries of our principal export markets like The United States, Canada, Netherlands, Japan, Singapore, Vietnam and Israel.

The Indo-South Africa Commercial Alliance (ISACA) with the Information Technology (IT) sector being serviced by the ESC and successful conduct of “India tech” expositions will provide major gateways of market diversification and export into the African sub-continent.