Growth of IT exports from Andhra Pradesh has slowed down during FY 09 due to the adverse impact of recession.
As on March 31, 2009, the exports stood at $6.5 billion (Rs 31, 800 crore) marking a 20 per cent growth compared with the year-ago period.
However, the annual growth rate of IT exports from the State was between 35 and 40 per cent for the last five years. The recession stunted the growth, Mr Ajay Mishra, Principal Secretary, Department of IT, Government of Andhra Pradesh, said at a CEO roundtable organised by the Confederation of Indian Industry, AP Chapter, here on Friday.
The IT industry had seen 20 per cent growth in creating direct employment at 2.39 lakh till end of FY08. “But during last year, there has been no growth. The employment generation nearly remained flat. This is a big concern,” he said.
campus recruitment
Despite the best efforts of the Government to make IT companies honour campus recruitment commitments made six months ago, they were not very sure of completing the process, he said.
The Government will encourage the IT industry to tap the untapped potential in domestic markets.
“For the last five years, our focus has been on extending the benefits of information technology to rural people. As part of this, we are focussing on encouraging the companies to set up operations in tier II and III cities,” the official said.
Recently, the State Government has signed memorandums of understanding with 15 companies. “As per the agreement, nine companies will launch operations in Visakhapatnam, two each in Kakinada and Tirupati and one in Warangal,” he said.
This would create employment to over 12,000 in next two-three years, he added.
Source : Business Line