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Nasscom chief optimistic of $50 b software exports
By Our Corporate Reporter
CHENNAI, DEC. 11.
The National Association of Software and Services Companies (Nasscom) is confident of achieving its $50 billion software export target by 2008 despite the challenges faced by the industry. Addressing presspersons here on Monday, Mr. Kiran Karnik, President, Nasscom, who is on his first visit to Chennai after assuming office, said though the target fixed much earlier was ambitious, it was achievable with the continued pro-active support from the Government and the right ambience.
Mr. Karnik said the financial year started with 50 per cent growth in the first quarter. But after the September terrorist attack on the U.S. a lot of businesses were postponed and despite that the April-September growth was 33 per cent. ``Our forecast for the whole year is 30 per cent and we stand by the figure'' he said.
Mr. Karnik said India's exports to the U.S. was 62 per cent of the total software exports and the U.S. market accounted for 60 per cent of the worldwide IT business.
Outside the U.S. the European market accounted for 22 per cent and Nasscom had taken a major initiative to increase software exports to this region besides concentrating in the Asia Pacific belt. However, the U.S. would continue to be an important market for India and by the middle of next year exports to the U.S. would pick up, he said.
Mr. K. V. Ramani, co-founder of Nasscom, said Japan was a difficult market to penetrate and despite that seven Indian companies have established branches there.
Referring to competition from China which was emerging as a big software exporter, Mr. Karnik said Nasscom had always believed in competition which was good for the industry and cautioned that ``we must take the initiative to retain our edge''.
By Our Corporate Reporter
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