Mumbai, Feb. 11: Nasscom today projected software exports to grow at a faster pace in 2014-15, buoyed by increased demand from the US and Europe and an uptick in discretionary spending.
According to the IT industry body, export revenues are projected to grow 13-15 per cent to reach $97-99 billion in 2014-15, higher than the growth rate of 13 per cent expected in this fiscal. Nasscom had earlier forecast exports to rise 12-14 per cent in 2013-14.
For the current fiscal, export revenues are estimated to be at $86 billion.
For 2014-15, Nasscom expects the industry to add overall revenues (domestic plus overseas) of $13-14 billion to the existing $118 billion. Domestic revenues are expected to grow at a rate of 9-12 per cent during the fiscal. In the current fiscal, domestic revenues are expected to grow 9.7 per cent to Rs 1,91,000 crore.
Nasscom believes increased demand from the US and Europe and a gradual revival in consumer confidence will lead to a return of discretionary spending.
Demand from Europe, which is estimated to grow at 14 per cent, will lead export growth revival even as the US continues to be the largest geographic market for India, contributing about 62 per cent.
Many IT companies have reported robust operating performance and issued an optimistic outlook, following an improvement in the global economic climate and rise in the technology spend.
“Indian IT-BPM (business process management) continues to remain the highest impact sector for India among all industries with the highest relative share in India’s GDP and exports among all services industries,” Nasscom said.
“India is now becoming home to a new breed of startup companies focused on high growth areas such as mobility, e-commerce and other vertical specific solutions — creating new markets and driving innovation,” Nasscom chairman Krishnakumar Natarajan said.
Inadequate government spending on hardware has dragged down the combined desk-based and mobile personal computer (PC) market by 20 per cent in the fourth quarter of 2013 to 1.96 million units, research firm Gartner has said.
“Consumers accounted for 49 per cent of the total PC sales in the fourth quarter of 2013. In the absence of any government orders, the Indian personal computer market performed dismally,” said Vishal Tripathi, principal research analyst at Gartner.