Friday, July 3, 2009

Will India IT sector miss export target of $60 bn by FY10?

India's software sector is likely to miss the much-touted target of touching 60 billion dollar exports by FY10, due to
unprecedented slowdown in key markets like the US and Europe, IT industry body Nasscom said.

"... the aspiration of $60 billion by December 2010 is likely to be delayed by at least three to four quarters due to unprecedented slowdown in 2009 in key markets, particularly the US and Europe," a Nasscom-McKinsey report said.

The technology and business services industry grew substantially to $52 billion in 2008 including $12 billion in the domestic segment.

Now with the financial meltdown taking its toll, the software and services revenue outlook has been revised downwards.

Nasscom had earlier scaled down the growth rate for software exports to 16-17 per cent in FY09 as against 21-24 per cent announced earlier.

However, the report -- Perspective 2020 -- said the future of the IT industry remains secure in the medium to long term, even in the face of current macro-economic trends.

Agencies

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