North America biggest market for Indian software

New Delhi, Aug 22 (UNI) North America accounts for close to 61.72 per cent in the total computer software/services exports by India, reveals a latest study.

The figure, for 2006-07, is a shade less than 62.10 per cent recorded in the previous year, said the study by Electronics and Computer Software Export Promotion Council (ESC).

''Indian software companies, especially small and medium enterprises (SMEs) have the maximum exposure of their exports in the US and therefore, they are the worst hit lot against the backdrop of rupee hardening against the greenback,'' said ESC Executive Director D K Sareen in a statement.

India's exports to North America have, however, perked up at 38.20 per cent in 2006-07 in rupee terms (41.46 per cent in dollar terms) compared to the previous year.

In absolute terms, North America accounted for 20.83 billion dollars in 2006-07 against 14.73 billion dollars during the previous year.

While the share of US in the total software/services exports still hovers around 60 per cent, European Union (EU) countries accounted for 27 per cent of the exports from India in 2006-07 compared to 25.71 per cent in the previous year.

The growth was more impressive for the EU at 46 per cent in rupee terms (49.4 per cent in dollar terms).

In absolute terms, exports to EU have gone up to 9.1 billion dollars in 2006-07 from 6.09 billion dollars in 2005-06.

''EU market is expanding and ESC is gearing up to tap the market through a variety of ways such as building B2B contacts, participation in the exhibitions, which is showing an encouraging trend as evidenced in greater penetration into that market by the Indian firms, particularly the small and medium enterprises,'' said Mr Sareen.

India's percentage share of export of computer software and services declined significantly (-25 per cent) to Japan, Korea and other Far East countries in 2006-07 against the previous year, but the total value of exports, recorded a growth of 3.57 per cent in rupee terms (six per cent in dollar terms), said the study.

The other important destinations of India's software and services exports are Australia, West Asia, African countries, Latin America, Russia and CIS countries, the study added.

UNI