Kolkata, Aug 2 Software export growth may dip to 8- 9 per cent in the first quarter of 2009-10, according to Mr D.K. Sarin, Chairman, Electronic and Software Export Promotion Council. The growth during the same period last year was nearly 26 per cent.
“Though the final figures are not ready yet, we are contemplating only a single digit growth during April-June,” Mr Sarin said.
The software and electronic hardware export in 2008-09 was $53.45 billion (Rs 2,45,834 crore). The growth slipped to around 17 per cent for 2008-09, from about 26 per cent in the previous fiscal.
“Software exporters should look at tapping the hitherto uncovered smaller markets in the US in order to cope with the decreasing global demand,” he said, pointing out that the focus could be shifted from popular destinations such as New York to tier-II and tier-III markets in the US such as Kansas, Arizona, Texas, Missouri, Minneapolis, and Minnesota. These States are comparatively less hit by the downturn and have a latent demand for outsourcing services across categories such as manufacturing and new emerging areas such as biotech.
The supply of software and services could also be diversified to other European countries such as France, Germany (particularly the province Bavaria), Spain, and Latin America, he pointed out.
While the depreciation of the rupee had been beneficial for the exporters last year, they should use hedging platforms such as the currency futures of the National Stock Exchange to mitigate probable future fluctuations, he added.
Source : Business Line