Software exports up 64 pc

MUMBAI, February 13: Despite the dismal trend in the overall export scenario, software exports have registered an impressive growth of 64 pe...

MUMBAI, February 13: Despite the dismal trend in the overall export scenario, software exports have registered an impressive growth of 64 per cent to net a revenue of Rs 5,860 crore in 1997 as compared to Rs 3,580 crore during the previous year.

According to a study by the National Association of Software and Service Companies Nasscom, the apex body of the Indian software industry, software exports during the year went up by 59 per cent in dollar terms. The figure is likely to cross the Rs 6,400 crore mark during 1997-98. The study indicated that exports during calendar 1998 may cross 2.5 billion. Said Dewang Mehta, executive director, Nasscom: quot;In spite of the slowdown in exports, software has managed to keep up its growth rate. We feel that after two to three years, exports should grow by even about 100 per cent.quot;

However he admitted that with a buoyant economy, the country could have increased software exports to around 75 per cent. He attributed the growth to the continuing increase in offshoreservices, Year 2000 problem and the new initiatives taken by Nasscom for increasing exports to Europe, the US, Japan and Australia.

The study indicates that the Indian software industry is poised to touch revenues of 6.5 billion by 2000 of which exports may be as high as 4 billion.

According to Mehta, as a result of lobbying efforts by the association in the US, a bill in the US Congress was quashed. The bill, HR 119, would have increased non-tariff trade barriers and would have had a considerable impact on Indian software exports to the US. quot;It would have severely affected the Indian companies that have subsidiaries in the US as they would have had to pay more taxes to the US government,quot; said Mehta.

Mehta clarified that the customs and central excise department, in a notification issued on Tuesday, had not exempt software in mobile phones, telecom and medical equipment from duty. Only quot;computer softwarequot; was eligible for zero duty. Software containing encyclopedia, games and books were eligible forexemption wherever they satisfied interactivity criterion.