The higher risk aversion by the Western outsourcing clients has impacted India's software receipts in the 12 months to June 2012. According to the latest trade data from the Reserve Bank of India (RBI), net software exports grew at the slowest rate of 4% in the last 10 years.
Net software exports, calculated as the difference between software receipts and payments, were $61.5 billion (approximately Rs 3.1 lakh crore) in the 12 months to June 2012 compared with $58.9 billion (approximately 2.7 lakh crore) in the prior 12-month period.
The growth in the latest 12 months period to June 2012 lags behind the growth seen during the subprime period four years ago.
The last time net exports growth fell to single digits was in the four quarters to June 2009, which encompassed the financial crisis in the West. Net exports had risen by 6.4% on year-on-year basis during the period as large financial institutions, which are major consumers of Indian IT services, were forced to cut technology budgets to curtail the impact of subprime debt default.