Press Releases: Karnataka software exports up 33%

BANGALORE: SOFTWARE exports from Karnataka during fiscal 2002 was Rs 9,903 crore, growing 33 per cent over Rs 7,475 crore made in the previous year.

Software Technology Park of India, Bangalore (STPI) had projected to make Rs 11,000 crore and had subsequently revised the target to Rs 10,000 crore.

Bangalore continued to be the preferred destination with 110 new companies-66 of them being 100 per cent foreign equity companies -setting up their base during the last fiscal.

Hardware exports from the State last fiscal was Rs 839.09 crore up 128 per cent from Rs 367.14 crore in previous year.

B V Naidu, director, STPI-Bangalore, anticipates software exports this fiscal to grow at 40 to 45 percent. The large number of IT enabled services (ITES) coming up in the state is expected to boost export earnings, he said.

Despite the gloomy global economy, last year’s export performance was impressive. The growth rate of foreign export companies in Bangalore is also a very positive sign, said Mr Naidu at a press meet here on Friday.

Turnover of the Indian software and service exports industry in FY 2001-02 was Rs 36,500 crore, an aggregate growth of 29 per cent. Nasscom, the trade body for Indian software and services firms, forecasts a growth of 30 per cent for the current fiscal.

The number of software technology park (STP) registered units in Karnataka has grown from 13, eleven years ago, to the current 1,038.

Foreign equity companies, like IBM Global services, Texas Instruments and Digital GlobalSoft, have contributed to Rs 4,077 crore of the total software exports, while major Indian companies accounted for Rs 4,463 core. The balance Rs 1,361 crore has come from small and medium firms.

Karnataka has two domestic companies Wipro and Infosys, which have revenues of above 1,000 crore. Thirteen companies have earnings in the range of Rs 100 to 1,000 crore, while there are around 326 companies whose turnover is less than a crore.

Naidu said that North America, which accounts for 69 per cent of total exports, continues to be the largest export-earning destination. Share of Europe is 21 per cent. Total capital investment for STP units last fiscal stood at Rs 1,368 crore.

Naidu said that IT enabled services is a fast growth area; so is bio-informatics.

Some of the new initiatives launched by STPI include a virtual private network service, a Web hosting and co-location service and the setting up of a storage attached network and disaster recovery centre.

Leading hardware exporters from Bangalore include Wipro, GE Medical Systems, Tyco Electronics and American Power Conversion.

Besides Bangalore, other centres in Karnataka which are growing software exports include Mysore (24 companies and Rs 39 crore revenue) and Mangalore (13 companies and RS 243 crore in revenue).