Exports up 24 per cent at Rs 72,000 cr in FY09.
During the yet-to-be ‘resolved’ recession in the West when the news of job cuts and curtailing of expenses would have been expected to translate into lower software exports from Karnataka, the experience has been the opposite going by the figures of software exports from the state in fiscal 2008-09.
Though the STPI, Karnataka, which usually keeps tabs on software exports figures is yet to make an official announcement regarding the same, industry sources say the state alone had software exports of about Rs 72,000 crore during fiscal 2008-09, a growth of over 24 per cent over the previous year. This shows Karnataka, which accounts for almost one-third of the IT exports, is not only ahead in the overall software export growth last year which was 16.3 per cent, but has achieved it despite a higher base.
R Rajalakshmi, director of STPI, Karnataka told Business Standard that the government was satisfied with the growth as this was achieved in ‘such a difficult period’. “Our base is quite high compared to other software exporting states and the industry faced a difficult time last year in the wake of global economic recession. This (growth) shows there is still huge opportunities for growth for the Karnataka in the software sector,” she added.
It is understood that given the good performance in IT exports, the state government was mulling give a guidance of achieving export revenues of Rs 100,000 crore in the next two years. However, the state seems to have changed the idea owing to a much lower software export revenue guidance given by Nasscom.
“We are comparing the figures with those of the previous years and linking the performance of various sub-sectors within the IT. It will be very hard to give such a figure now given the present situation,” Rajalakshmi added.
Nasscom recently announced that export revenues from the IT and BPO sector grew 16.3 per cent to Rs $46.3 billion (Rs 2,31,500 crore). However for the ongoing fiscal, the industry body has given a very cautious guidance of 4-7 per cent growth though it has predicted recovery in some of the traditional verticals like banking and financial service.
However, industry leaders in the state are quite optimistic that the state is able to march ahead as the leader in IT exports by instilling confidence among the more than 2,000-odd IT companies in the state, and investors planning operations in Karnataka.
“I want Karnataka to take this number and tell everybody how they have been successful. With over 600,000 people working in the software sector and export revenues of Rs 72,000 crore — is unbelievable. The state government should stand up and tell that they will have a target of Rs 100,000 crore of software exports in two years. This will not only enthuse people, but will create a fervour, enthusiasm and energy among the people and the industry,” said Infosys board member and head of HR and administration T V Mohandas Pai.
The Karnataka government is planning to promote the tier-II and III cities in the state by announcing a ‘Rural IT policy’. The policy, which is expected to be announced sometime from now, will specify the incentives the government is planning to provide to IT companies willing to set up operations in cities like Mysore, Mangalore, Hubli.
