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Last Updated : Jun 12 1999 | 12:00 AM IST

India could lose information technology software and services export revenue up to $23 billion, which is 30 per cent of the projection for 2008, and about 6,50,000 jobs if it is unable to link with the global telecom infrastructure, according to a Nasscom-McKinsey report titled "Indian IT Strategies".

"Currently, India is significantly behind global telecom standards in all key service parameters. To achieve and sustain global parity in telecom infrastructure, India needs a quantum improvement in the short term, and then must continuously improve thereafter," says the report, which was presented to the Prime Minister yesterday.

The report suggests that to remedy this, India should reset its goals for the IT sector to increase revenue from $4 billion in 1998 to $87 billion by 2008, including $50 billion in exports.

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The report projects 2.2 million jobs, an annual FDI of $4-5 billion and contribution of more than 7.5 per cent of GDP growth by 2008. Further, in 2008, of the $87 billion worth of business opportunities, IT services will fetch $38.5 billion; software products, $19.5 billion; IT-enabled services, $ 19 billion; and e-businesses, $10 billion. "At the same time (by 2008), new markets for IT services will open up. Driven by need... professional services will spend $102.6 billion on IT services. Similarly, communications, healthcare and the utilities sectors, that will increasingly be deregulated, will become major markets for IT services," the report says. India's software and related services sector is estimated to reach a market capitalisation of $225 billion by 2008.

Mckinsey & Co managing director Rajat Gupta said, "Our challenge is to unleash a culture of innovation in India that, together with a track record of high-quality software development, will propel India to be an IT superpower."

At the Indian IT Strategies Summit organised by Nasscom (National Association of Software Services and Companies), US ambassador Richard Celeste, while stating that growth of the Indian IT industry plays an important role in bringing th

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First Published: Jun 12 1999 | 12:00 AM IST

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