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Sumeet Kaul

Mumbai , June 3

EVEN as India's software exports saw 34 per cent growth from last year, software exports at the Santa Cruz Electronics Export Processing Zone (SEEPZ) declined by nearly 20 per cent.

Software exports from SEEPZ constitute about two per cent of India's total software exports. TCS, Datamatics and Patni are some of the major software companies with units in the zone.

Software exports from SEEPZ fell to Rs 1,027 crore in 2004-05 from Rs 1,231crore in 2003-04, according to the tentative figures obtained from the zone authorities.

Meanwhile, exports in electronic hardware also declined - to Rs 1,216 crore from last year's Rs 1,311 crore.

Over the last four years both software and hardware exports have remained somewhat static, in the Rs 1,200 crore-Rs 1,700 crore range.

Total exports from SEEPZ, however, rose to Rs 8,298.59 crore from Rs 7,856.33 crore last year, a 5.6 per cent growth.

This came mainly on the strength of export earnings by gem and jewellery units, which grew by 28 per cent.

Gem and jewellery exports touched Rs 5,734 crore in 2004-05, compared to Rs 4,487 crore in 2003-04.

Software exports have stagnated in SEEPZ as software firms prefer expanding their operations in areas with IT-specific ambience such as STPIs, according to Mr Gopinath M.M., Secretary, Santacruz Electronics Export Manufacturers Association, and Manager, Celetronix India Pvt Ltd.

SEEPZ, which came into existence in 1974, was started as an export processing zone for the manufacture and export of electronic items.

Software was a nascent sector then. In 1987, gems and jewellery manufacture and exports got added to its portfolio.

Currently, there are about 186 working units in SEEPZ, of which 85 are hardware and software units and the rest are gem and jewellery.

SEEPZ remains attractive for hardware manufactures as it offers in-house Customs clearance.

"For hardware manufacturing houses, Customs clearance means a continuous supply of goods but software companies do not require such clearance," said Mr Gopinath.

Lack of growth in hardware exports is partly due to the lack of space for firms to expand further at SEEPZ. It also discourages other hardware units to set shop there.

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