India's IT software services industry growing at a slower pace
10 Aug 2011
The annual growth rate of the information technology (IT) software and service industry during fiscal 2009-10 and 2010-11 has been considerably lower than the annual average growth rate of the sector during the past five financial years, minister of state for information technology Sachin Pilot stated today.
The global slowdown has impacted growth of the Indian IT software services exports as over 75 per cent of the total software and service revenue of the country comes from exports, he stated in written reply in the Lok Sabha.
India's software services industry (including exports and domestic sales) grew at a record 31.2 per cent in 2005-06 to Rs1,33,700 crore and further at a record 33.1 per cent to Rs1,78,000 crore in 2006-07. The industry logged a lower growth of 18.8 per cent in 2007-08, achieving sales of Rs2,11.410, but bounced back in the following year (2008-09) with an impressive 30.2 per cent growth to Rs2,75,190 crore. However, it ended 2009-10 with the lowest growth rate in five years of 10.8 per cent with sales of Rs3,04,800 crore.
The industry grew at an average annual growth rate of 24.8 per cent during the five financial years 2005-06 to 2009-10.
Against this, the IT software services industry grew at 14.3 per cent during the 2010-11 financial year, recording sales of Rs3,48,330 crore.
He said the government continues to extend several incentives for the information technology sector in the country under the Software Technology Parks (STP) scheme.
Besides, software is also exempt from basic customs duty. Furthermore, several items for the IT sector are covered under the international trade agreement, and hence exempted from customs duty, he said.
