IT industry targets $ 60 bn by 2010: NASSCOM Review

Kolkata, Jan 29: Indian IT industry will achieve ambitious target of 60 billion US dollars in exports by 2010, according to NASSCOM Strategic Review 2007.

The review said the industry had grown its revenues ten fold in the past decade, from USD 4.8 billion in 1997-98 fiscal to USD 47.8 billion in 2006-07.

The review indicated that the sector's contribution to GDP is estimated to have grown from 1.2 to 5.4 per cent in the same period.

The report would be formally released at its 15th annual summit "NASSCOM 2007: India Leadership Forum", scheduled from February 7-9, 2007 in Mumbai.

Commenting on the Strategic Review 2007, NASSCOM Chairman, who is also the Founder and Chairman of Satyam Computer Services B Ramalinga Raju here today said, ''The last decade is testament to the growing impact that the Indian IT industry is having on the global and local economies.

The industry is perfectly poised to tap new opportunities in the offshoring and domestic segments for greater wealth and IP creation for the country.'' NASSCOM President Kiran Karnik said, ''Indian IT industry's consistent growth in both exports and domestic segments and its ongoing expansion into new potentially high growth opportunities reaffirms the continued confidence and global competitiveness of the Indian IT sector.'' ''We are confident that the industry will achieve its ambitious target of USD 60 bn in exports in 2010. The challenges faced by industry are being addressed jointly by the industry, government and other stakeholders through both short and long term solutions,'' he mentioned.

The Strategic Review 2007 also reviewed the industry's performance in 2007, estimated growth potential and assessment of India's competitiveness as a sourcing destination.

The Indian IT-ITES sector (including the domestic and exports segments) is expected to exceed USD 47.8 billion in annual revenue in FY07, an increase of nearly 28 percent in the current fiscal, the report said.

It said, ''Service and software exports remained the mainstay of the sector contributing USD 31.3 billion and beating forecast to register a 32.6 per cent growth.'' Offshore product development and engineering services is growing at 22-23 percent and expected to report USD 4.9 billion in exports in financial year 2006-07, the review said.

The review said the MNC investments reached an unprecedented scale over USD 10 billion announced in 2006-07, to be invested over the next few years.

The total size of the domestic market is expected to cross USD 15.9 billion in FY 2006-07, a growth of 21 percent over 2005-06.

UNI