An estimate by the Electronics and Computer Software Export Promotion Council (ESC) says that software exports are expected to post a growth of 33 percent in terms of dollar and 23 percent in terms of rupee in the current financial year. In absolute terms, exports during FY08 will workout to $45 billion (Rs 180,000 crore).
"Though IT export growth is significant, it has fallen short of the proposed target set by ESC for the year 2007-08 at 39 percent in dollars and 36 percent in rupees. These growth targets had been set considering past growth trends and confidence levels of software exporters last year," Sanjiv Narayan, chairman, ESC, said today.
The rupee appreciation for the last 16 months had adversely impacted the rupee realization from exports, he said, adding, "Our data compiled from various IT exporters indicate that the fall in rupee realization from exports was to the extent of 12 to 15 percent. This has taken place at a time when real estate prices (rentals and property prices) are skyrocketing and HR expenses – salaries and perks – have increased considerably. Such increases are felt even in tier II and III cities."
ESC Executive Director D K Sareen says that the need for hedging against currencies and invoicing exports in currencies other than the dollar has been advised to the council’s member exporters.
Laying emphasis on beefing up the hardware electronics sector, he said the country could emerge as a hub for repairing electronic gadgets and gizmos such as mobile phones, digital cameras and digital medical equipment.