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Slowdown hits IT exports in State.


Date: 24-10-2009
Subject: Slowdown hits IT exports in State
The economic slowdown seems to have a telling impact on the IT exports volumes from the State.

The State now expects to achieve Rs 35,000 crore in the financial year 2009-10 as against Rs 32,509 crore in 2008-09.

Growth rate

For the first time in six years, the State is going to witness a single-digit growth rate this financial year at about 7.7 per cent as against 24.50 per cent in 2008-09.

The growth rates were 65 per cent in 2004-05, 51 per cent in 2005-06, 49 per cent in 2006-07 and 41 per cent in 2007-08.

“For the first six months ending September, we are expecting to reach Rs 12,000 crore, reflecting a static growth rate over last year’s first half,” Mr P. Venugopal, Director of STPI (Hyderabad), said.

Mr M. Narasimha Rao, President of Hyderabad Software Exporters’ Association, however, said that the growth could be around 10-12 per cent this year.

“We have seen positive signs in the second quarter. Though we can’t achieve last year’s growth levels, we should see a double-digit growth this year.

The momentum would be carried on into the next financial year,” he said.

Addressing a press conference after the State Minister for IT, Mr K. Venkata Reddy, released a HYSEA directory of IT product companies in Andhra Pradesh, he said the final estimates for the first half would, however, be out two months later when companies got ready with their correct export numbers.

Meanwhile, Andhra Pradesh is preparing a policy to implement one of the first Information Technology Investment Regions (ITIR) in the country.

To cover an estimated 150 sq km area, touching Uppal, Gachibowli and Shamshabad areas in the State Capital, the ITIR would have at least 40 per cent processed area (which would house high-end infrastructure for the IT industry).

The remaining area would be dotted with utilities and residential space.

Mr Sameer Sharma, AP’s IT Secretary, said that Pricewaterhouse Coopers, was readying a draft policy for the Hyderabad ITIR.

“They are going to complete it in the next few weeks,” he said.
IT Ministers’ meet

Mr Venkata Reddy said the Centre had convened an IT Ministers’ conclave in New Delhi on October 27.

Source : Business Line 

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