Amid Muted Growth Signal, Nasscom to Tap Non-US Mkt - The New Indian Express

Amid Muted Growth Signal, Nasscom to Tap Non-US Mkt

Published: 20th March 2014 07:46 AM

Last Updated: 20th March 2014 07:46 AM

Even as the Indian IT-BPO revenues are expected to touch to $118 billion in FY14 from $108 billion in FY13, the domestic IT market is likely to maintain muted growth at $32 billion in FY14, according to trade body Nasscom.

The Indian IT market has been registering a flat growth at $32 billion since FY12.

With the US economy showing signs of revival, software exports from India are expected to see a marginal growth in FY15 at 13-15 per cent from FY14’s 13 per cent growth.

According to Nasscom projections, software exports are likely to touch $86 billion in FY14 and around $97-99 billion in FY15. They stood at $76 billion in FY13. The sector also emerged as the largest private sector employer crossing the 3 million employee mark this year.

“There are huge challenges both in domestic and international markets but opportunity still exists. The growth we are seeing is the resultant of this combination (challenges and opportunity). The sector has done well amidst all uncertainties, challenges like currency fluctuation, inflation and trade flows,” said R Chandrashekhar, President, Nasscom.

He added that a new strategy for domestic market needs to be derived with focus on unique solutions involving IT in healthcare, education and other sectors. “The key is determining how to use the power of disruptive technology to create transformation within the country,” he said.

In rupee terms, however, the Indian market is projected to register 10 per cent cent growth for the current fiscal 2013-14 with revenues touching `1,148 billion from `1,043 billion a year ago.

Stating that the US and UK continue to account for 80 per cent of the Indian IT exports, Chandrasekhar underscored the need to explore new geographies like Africa, Asia China and Japan.

“It is not about displacing some others in the new geographies. We need to help the industry there by offering value addition using IT products and services,” he said.

Admitting that the political uncertainty over bifurcation of Telangana and Seemandhra had indeed affected IT investments into Andhra Pradesh, Chandrashekhar said, with the ambiguity coming to an end, unhindered growth of the sector can be expected in the next phase.

“Because of the level of uncertainty here (Hyderabad), new investments were completely taken off in the past 2-3 years, while some of the existing companies exercised caution when it came to expansion. And in some extreme sensitive cases, some (companies) even moved out,” he said.

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