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Tamil Nadu's IT, ITeS exports pick up pace in 2017-18, grow 8.55%

This is significant as the state, facing a decline since 2014-15, had reported a modest three per cent IT-ITeS export growth rate last year

Gireesh Babu  |  Chennai 

IT Industry, IT, Information Technology, Office, Job

The value of information technology (IT) and IT-enabled services (ITeS) exports from Tamil Nadu, South India’s third-largest exporter in the segment in recent times, grew 8.55 per cent in 2017-18 over a year earlier to Rs 1,111.79 billion. This is a significant pick-up, given that the state, facing a decline since 2014-15, had reported a modest three per cent IT-ITeS export growth rate last year.

leaders from said the state’s exports in the segment had been growing at a higher rate than the national average and that was a good sign for industries in the state. The IT industry’s average growth rate for India, according to body Nasscom, is around seven per cent.

According to the latest policy note for the information technology department, the state government has said that the exports from have grown to Rs 1,111.79 billion (estimated), compared with Rs 1,024.15 billion during 2016-17, when they had grown 3.3 per cent over Rs 990.95 billion the previous year.

The estimated investment in the IT and ITeS grew to an estimated Rs 399.81 billion during 2017-18, as compared with Rs 367.04 billion the previous year. In 2015-16, the investments had been to the tune of Rs 299.98 billion, according to the government, which cited the Software Technology Parks of India (STPI) and the commerce ministry.

Among southern and south-western states of India, Karnataka was the top exporter of IT products and services (worth Rs 2,025.94 billion in 2016-17), while Maharashtra was the second (Rs 1,215 billion) and Telangana fourth (Rs 851.76 billion).

The government is setting up ELCOSEZ, IT and ITeS Special Economic Zone in Chennai, Coimbatore, Madurai, Tiruchy, Salem, Tirunelveli and Hosur to act as the destinations of choice for attracting investments in the segment within the state.

Land has been allocated to various companies, including Wipro, HCL, Ford Motors, Cognizant Technologies Solutions, Sutherland Global Services Ltd under these SEZs and these are operating with thousands of employees working from these facilities, said Tamil Nadu’s IT minister M Manikandan in the state government's policy note for for 2018-19.

First Published: Tue, June 12 2018. 12:50 IST