The Hindu : Nasscom aiming at $15.5 billion turnover

Online edition of India's National Newspaper
Wednesday, Jan 21, 2004

Business

Business

Nasscom aiming at $15.5 billion turnover

By Our Special Correspondent

Kiran Karnik

NEW DELHI, JAN. 20. With revenues topping $12 billion in 2003, the Indian software industry is aiming for a IT software and service industry turnover of $15.5 billion in 2004. In the $12 billion turnover in 2003, exports accounted for $9.5 billion and this is expected to go up to $12 billion in the overall turnover of $15.5 billion expected in 2004.

Briefing the media here today on its focus areas in 2004, the National Association of Software and Service Companies (Nasscom) President, Kiran Karnik, said in the current year, the association intended to raise issues central to the Indian information, communication and technology industry, particularly those pertaining to the World Trade Organisation (WTO), the General Agreement on Services (GATS), the global economy, security issues and the like.

"With a series of elections scheduled in a number of countries this year, we do not expect substantial agreements to be reached on these issues in the current year, but forward momentum is definitely possible. After agriculture, services sector is the most important issue at the WTO,'' he added.

Expanding on the agenda, Mr. Karnik said the Nasscom was working towards achieving zero tariff rates for services in the major economies in another five to seven years.

About India opening itself up for services imports, he said the services sector had tremendous potential with huge export opportunities. He discounted the apprehensions of accountants about opening up of the Indian market by saying that if the accounting market was opened up, Indian accountants could get well-paid jobs and more employment opportunities. "As in the case of IT services, Indian accountants can definitely compete with foreign accountants and reap the benefits,'' he added.

Another area of Nasscom's focus would be building up the domestic IT market as the gap between the domestic market and exports was widening. "The domestic market for IT has grown 15-17 per cent while exports are growing at nearly 30 per cent. The divergence is quite significant and unless attention is paid to the domestic market, this divergence will only grow. The Nasscom has set up a separate forum to deal with this issue,'' he said.

About the backlash taking place against Indian software personnel, Mr. Karnik said this was an issue that had to be looked into but should not divert the Indian industry from its main task of India brand building. "There has been a backlash in the U.S. against job losses to India but as the economy there is growing, we expect more jobs to be created there which could turn the focus away from India,'' he said.

The Nasscom is also planning its India Leadership Summit in Mumbai from February 3 to 6 where over a 100 well known names from the international IT business and political communities would address some 30 sessions. The three-day function would bring together over 400 companies and attract close of 1,000 delegates from across the globe, Mr. Karnik said.

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