Software association Nasscom today said the sector is well on course to meet the export growth target of 30-32% in 2004-05 and that with right laws, policies and infrastructure support, the sector is capable ofmaintaining over 30% growth over the next five years."We are comfortable with our export growth projections of 30-32%. We are maintining that. The first six month results of all public companies has been good. In next few days we will have third quarter results of all major IT companies and our feedback indicate that it is good. We will meet the 30-32% export growth... We don't see any glitches towards that," Kiran Karnik, Nasscom president, said today.He said over 30% growth in the exports is sustainable provided "We don't create problems for ourselves in terms of policies and laws".Referring to the BPO circular of last year which had distinguished between core and ancillary functions of a foreign BPO company and accordingly taxing it, Karnik said, "There was no need for that circular (which ultimately was clarified with MNCs getting reprieve) and till then the sector was running smoothly. Due to the apprehension created in the minds of the MNCs, we definitely lost some business."Another concern is poor infrastructure, Karnik said adding "If laws, policies and infrastructure are right, we could comfortably reach over 30% growth over next five years".Software and services exports are expected to grow at 30-32% to touch $11.2 billion while exports in ITES-BPO segment is likely to be $5.1 billion, as per Nasscom projections.
