The Hindu : Business : IT, ITES revenues to touch $36 b

Online edition of India's National Newspaper
Friday, Feb 10, 2006

Business

Business

IT, ITES revenues to touch $36 b

Domestic market expected to grow by 22 p.c. Domestic market expected to grow by 22 p.c.

Sector's share put at 4.8 p.c. of GDP in 2006 Exports to account for two thirds of the total revenue

GROWTH PROSPECTS: S. Ramadorai, Chairman, Nasscom, with Kiran Karnik, President, at a press conference in Mumbai on Thursday. — Photo: Paul Noronha

MUMBAI: The IT and IT enabled services sector would generate revenues to the tune of $36 billion in the current fiscal, up by 28 per cent from $28.4 billion posted a year ago, the National Association of Software and Service Companies (Nasscom) on Thursday said

The sector would account for 4.8 per cent of GDP in the financial year 2006 with exports to account for nearly two third of the total, Nasscom Chairman and Tata Consultancy Services MD and CEO S. Ramadorai told reporters here.

"The Indian IT and ITES sector continues to chart a double digit growth and is expected to exceed $36 billion in annual revenues in the current fiscal. Out of this, software and services exports are estimated to grow by 32 per cent to reach $23.4 billion,'' he said.

The Nasscom strategic review for 2006 revealed that engineering and research and development of software products will register 37 per cent growth during the period and the sector would track to achieve the targeted $60 billion in exports by of 2009-10.

Nasscom President Kiran Karnik said IT services exports would grow at 35 per cent while ITES BPO exports to grow by 37 per cent and would expect to touch $6.3 bilion. The domestic market, he said would grow by 22 per cent in the financial year 2006.

The IT and ITES industry would employee 12.87 lakh people during the fiscal, the study said. As the industry faces a scarcity in skilled labour, Mr. Karnik said Nasscom was working with the academia across the country to encourage and facilitate greater industry interaction. — PTI

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