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India’s IT exports to reach $86bn- Nasscom
November 21, 2013, 5:30 am

Encouraging figures in the last two quarters is driving optimism for the sector [Getty Images]

Encouraging figures in the last two quarters is driving optimism for the sector [Getty Images]

India’s domestic information technology (IT) sector is set to accelerate by 12-14 per cent the current fiscal, an industry lobby group said on Wednesday as hopes rise that an improving global economy will drive demand.

IT exports are likely to reach $86 billion in the current fiscal on the back of adoption of new technologies and tapping new geographies by corporates, the National Association of Software and Services Companies (Nasscom) said.

“The (IT sector) growth will be 12-14 per cent in dollar terms and in rupee terms, it will be higher because of currency (fluctuations),” Nasscom President Som Mittal asserted.

Encouraging figures in the last two quarters is driving optimism for the sector.

“Last fiscal, the IT sector grew by 10.3 per cent…but the last two quarters results (showed) companies are doing good,” he said.

“From $76 billion last year, it (exports) is expected $86 billion…it is $10 billion increase…lets not talk about slowdown, the base has increased. Therefore, the growth in percentage will certainly drop as the base has increased,” he said.

The growth in IT exports would be possible because of existing customers moving to new technologies such as social media mobility, health care, utilities and moreover, new geographies, he added.

The Indian official also said employment in the IT sector is rising in comparison to other industry verticals.

“We are adding net people… people talk about (that) hiring is going down. We added two lakh (200000) people last year, and we are hiring now. Tell me which industry is hiring,” he said.

He said the hiring in current fiscal might be 180000.

The $108 billion IT industry has been the most important pathway to modern India’s growing middle class.

The IT services industry in India grew in large part because of the availability of cheap skilled labour

 

Source: Agencies

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