India IT sector exports to grow 12-14 percent in FY14: Nasscom

MUMBAI (Reuters) - Exports from India's IT outsourcing sector are expected to grow between 12 and 14 percent in the fiscal year starting April to as much as $87 billion, according to the National Association of Software and Services Companies (Nasscom), the industry lobby.

Exports from the industry, which counts the United States and Europe as its biggest markets, were estimated to have grown 10.2 percent to $75.8 billion in the current fiscal year, Nasscom said on Tuesday.

The global economic uncertainty caused corporations in the United States and Europe to cut back on IT spending, leading Nasscom to bring down its forecast for the current fiscal year.

 

Exports would only grow to touch the lower end of an earlier forecast of 11-14 percent, Nasscom had said in November.

Strong December-quarter results from second-ranked Infosys and its peers, including top-ranked Tata Consultancy Services , prompted investors to speculate that the coming year will see an increase in IT spending, while overall budgets are expected to remain largely unchanged.

(Reporting By Harichandan Arakali; Editing by Gopakumar Warrier)