SURVEY LAUDS 32 PERCENT GROWTH IN IT, BPO EXPORTS

New Delhi
The Hindu Business Line | Deccan Herald | 

IT and BPO export revenues surged 32.6 percent to touch $31.3 billion in 2006-07 helped by steady expansion into newer service lines, increased geographical presence and unprecedented rise in investments by MNCs, the pre-Budget Economic Survey said today.

The survey noted that computer software contributed Rs 1,41,800 crore, while electronics hardware accounted for Rs 11,500 crore to the total electronics exports basket of Rs 1,53,300 crore.

It observed that majority of Fortune 500 and Global 2000 corporations were sourcing IT-ITES from India, while on the hardware side a slew of electronics and telecom manufacturers such as Nokia, Motorola, Foxconn, Flextronics, Samsung, LG, Ericsson and Alcatel had either set up their units or were in the process of investing in the country.

India is also emerging as a major R&D hub, it added.

“All the top 10 global fabless design companies have operations in India and 17 of the top 25 semiconductor companies worldwide have strong presence in the country,” it said.

The sector has also registered an increase in employment numbers, with the total headcount rising from an estimated 12.87 lakh in 2005-06 to 16.21 lakh in 2006-07.

“In addition, the sector is estimated to have helped create an additional 60 lakh job opportunities through indirect and induced employment in telecom, power, construction, facility management, IT transportation, catering and others,” the Survey said.

The sectoral growth has been supported by major policy measures such as Special Incentive Package Scheme (SIPS) announced by the Government to encourage investments in semiconductor fabrication; and constitution of task force to promote growth of electronics IT hardware manufacturing industry.