Fracas Over Software Export Performance Report

The Electronics and Computer Software Export Promotion Council (ESC), a body sponsored by the commerce ministry, has dismissed as "incorrect" the ministry's figures which showed exports falling by 24.4 per cent in April-July 1996.

"On the contrary, software exports have grown by 42.78 per cent in rupee terms and 34.73 per cent in dollar terms in the first quarter, and exporters are confident of exceeding the export target of Rs 4,000 crore this year," R H Naqvi, executive director of ESC said.

According to ESC records, exports during April-June 1996 were Rs 750 crore ($211 million), as against Rs 525 crore ($157 million) recorded during the same period in 1995.

Naqvi asserted the Federation of Indian Export Organisations (FIEO), which cited commerce ministry's figures in a press release last week, had formulated its conclusions from a sample of two per cent of the exporters and was thus off the mark.

Naqvi wondered how the ministry could have put out such figures indicating a sharp fall in exports, as ESC was the ministry's main source of information.

He asserted that ESC's figures covered 60 per cent exporters saying "we categorically deny the apprehensions that software exports are falling and appeal to one and all not to harm the industry by these wrong statements."

The FIEO had last week expressed concern about the allround fall in exports and had taken special note of the reported fall in software exports. Citing commerce ministry figures, the federation had said that a sharp decline had been witnessed even in groups which had earlier witnessed reasonably good growth.

It said it was "particularly puzzled by the heavy fall in software exports which have been among the most promising exports of the country."

The federation felt that the decline could be attributed to the erosion of exporters' profits by three to four per cent. FIEO said software exports fetched $10.2 million in April 1996, as compared to $27.4 million in April 1995.

Naqvi said the council would encourage exporters to tap newer markets and reduce their dependence on North American and European markets.

Japan, Brazil, South Africa, Saudi Arabia and the West Asian nations were emerging as major markets for Indian software, he said adding, his council would conduct fairs in these places to help exporters capture these markets.