Nasscom Sees 64% Rise In Exports

Indian software exports is set to grow more than 64 per cent to Rs 6,400 crore by the end of the current fiscal, according to Dewang Mehta, executive director, National Association of Software & Service Companies (Nasscom). Last year, India had exported software worth Rs 3,900 crore.

The domestic market is likely to account for little more than Rs 3,500 crore, and the total software market in the country is

likely to grow to nearly Rs 10,000 crore during the current fiscal from last year's Rs 6,300 crore.

Mehta was in the city to inaugurate the 4-day PC Quest Compass '98. Nasscom, which recently submitted a draft information technology(IT) blueprint to the BJP government for formulating a comprehensive national information technology policy, will launch a Rs 100-crore venture capital fund for software projects over the next few months, Mehta said.

 

Nasscom has urged the government to come out with a comprehensive information technology policy spelling out the short, medium and long term policies. Mehta was confident that the government would introduce guidelines on cyber laws over the next six months.

Nasscom's efforts to bring top software organisations of UK, France, Germany and other European countries to form an association and have a common forum have yielded results with the recent formation of the European Software Industry Association (ESIA). Earlier, dearth of any single organisation or counterpart was a major stumbling block for Indian firms to enter Europe.

Currently, Nasscom is working on a string of projects with European countries and Japan to expand India's software products globally.

Indian software firms are eyeing the lucrative $1billion software market which will open up after Jan 1, 1999, when a common European monetary union(EMU) becomes effective. Nasscom, which entered into a software promotion project, Nasscom India European Software Alliance(NIESA), in 1994, has been using this platform for bringing Indian and European firms together.

As a result, India's software exports to Europe has increased to around 22 per cent.

The United States, which accounted for 95 per cent of exports for the past five years, now accounts for around 60 per cent of India's software exports.

Similarly, focus is also shifting to Japan where Nasscom has started Project Ninja under which match-making between Indian and Japanese firms will take place. "Two hundred Japanese firms have sent inquiries for Y2K," Mehta said.

Regarding steps against software piracy, Mehta said efforts are on to educate the end users. The rate of software piracy in the country had come down from 89 per cent in 1992 to 60 per cent in 1997. "Though the rate of software piracy has come down, the volumes have increased," he said.Top on the 1998 agenda are to lobby for introduction of internet in schools and institutions, development of software technology parks in different states, and incentives for promoting software exports.

There are around 480 software firms under Nasscom, accounting for 95 per cent of software development. The top 25 software firm in India account for nearly 68 per cent of the market, he said.