The Hindu Business Line : Software exports from AP up 48%

Growth story
Accounts for 14% of the country's total exports estimated at Rs 1,34,000 cr.
The year also marked the emergence of some tier II cities.

Hyderabad May 29 Software exports from Andhra Pradesh topped Rs 18,582 crore (about $4.5 billion), registering a growth of 48 per cent over last year (Rs 12,521 crore), thereby, accounting for 14 per cent of the country's total exports estimated at Rs 1,34,000 crore (preliminary).

Eventful year

The Software Technology Parks of India (STPI) has indicated that they expect to continue this momentum to log software exports of about Rs 25,000 crore this fiscal, registering a growth of over 35-40 per cent.

The Director of STPI-Hyderabad, Mr E. Manoj Kumar, said that the year 2006-2007 was eventful with about 174 new companies coming into the State, investing about Rs 1,900 crore. The year also marked the emergence of some tier II cities on the IT horizon. Of the total exports from the State, software exports account for about 53 per cent.

Addressing a press conference along with senior members of the State administration and the State IT Minister, Mr R. Damodar Reddy, Mr Kumar said Vizag has emerged as one of the most preferred tier II location in the country by an independent survey conducted by Alsbridge.

The accent of both the STPI and the State Government was to encourage small and medium sized enterprises to expand and contribute to exports and employment generation. The focus is on to ensure that majority of the IT firms now in the Rs 100- to Rs 500-crore bracket get to Rs 1,000-crore mark.

Investments

Providing a break up of the investments in the sector, Mr Kumar said foreign companies have invested about Rs 603 crore, Indian firms Rs 626 crore and Rs 671 crore was in IT parks. Some 185 existing companies, including most of the IT majors have expanded their operations in the State.

The STPI official said five companies have exports of over Rs 1,000 crore, three companies were in Rs 500-to Rs 1,000-crore bracket, and 24 companies were in the Rs 100-to Rs 500-crore and about 37 companies were with revenues less than Rs 100 crore.

The US continues to account for a lion's share with 68 per cent, followed by Europe (18 per cent) Asia Pac (11 per cent) and rest 3 per cent. IT services accounted for 44 per cent of revenues followed by ITES and BPO with 33 per cent.

Meanwhile, Vizag has already begun to contribute to software exports with Rs 245 crore, followed by Vijayawada with Rs 42 crore. More cities are set to contribute to exports with local firms setting up units. The State expects to see Vizag contributing Rs 1,000 crore by 2010 as companies such as HSBC, Satyam and Wipro expand their presence.

More Stories on : Exports & Imports | Software | Andhra Pradesh

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