Indian IT Industry to Cross $100 Billion Revenue
Thursday, 09 February 2012, 16:04 IST
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New Delhi: India's IT and related services sector will cross $100 billion revenue mark in the current fiscal but growth may dip in 2012-13 with rising global economic uncertainties coupled with domestic policy paralysis, said industry body, NASSCOM. "This has been a very good year (2011-12) for the industry. We have seen a growth of 16.3 percent. This (fiscal) year the industry will cross $100 billion mark," said Rajendra S. Pawar, National Association of Software and Services Companies (NASSCOM) Chairman. According to the industry group, total revenue of the sector will reach $101 billion comprising of $69 billion in exports and $32 billion sales in the domestic market. Pawar cautioned that growing global economic uncertainties caused by various factors like the U.S. presidential elections, euro-zone debt crisis and a domestic policy paralysis can dampen the industry's growth. For 2012-13 fiscal, Pawar expected the growth to be in the range of 11-14 percent but said that the sector can reach its target of $225 billion in revenue by 2020 if the industry grows at an annual rate of 13 percent from next fiscal onwards. "We can meet the Vision 2020 target of $225 billion if we grow at a compounded annual growth rate of 13 per cent from next fiscal." Meanwhile, Som Mittal, NASSCOM President, called upon the government to provide the industry with support like being given by competing countries like China, Brazil, the Philippines, South Africa and Egypt. "There is policy paralysis in India. There is no road map on DTC (Direct Tax Code), GST (General Sales Tax) and SEZ (Special Economic Zone) issues. There is also increased tax activism which makes us a soft targets," Mittal said. On hiring sentiments in the industry, NASSCOM said it expected the sentiment to be damp at 1 lakh jobs in the coming fiscal from 1.2 lakh new jobs projected to have been created in 2011-12. On wage front, the industry association expects an increase of around 8 to 10 percent in the coming fiscal from 10 to 14 percent in the current fiscal.
Source: IANS