The export potential of India's IT industry has been recognized by all developed nations across the world. As per the NASSCOM-McKinsey report, IT export from India in the year 2008 is projected to be 35% of total Indian exports. According to this report, the products and services of IT sector will account for more than 7.5% of the total growth of GDP in India in the 2008 fiscal. The IT and IT enabled sectors, the online businesses, and the software products of India are renowned all over the world for their quality and cost efficiency. With its huge growth potential, the information technology sector of India has emerged as a preferred investment area for the IT biggies across the world.
As per the NASSCOM- McKinsey report, the IT sector of India will provide 2.2 million job opportunities for the skilled Indian workforce by the end of 2008. The market capitalization of the IT sector is expected to be about 225 billion US dollars by 2008.
The Government of India with the help of the IT ministry has taken all the necessary initiatives and policy measures to facilitate software exports from India. Efforts are also on to reach the full potential of the India's IT industry. There is no doubt that growth of Indian software exports crucially depends on the US demand for the same.
The subprime failure in US has brought about recession in the economy of the United States in the recent time. This slowdown of America is going to have adverse effects on all major economies of the world.
The economists and financial experts are of the opinion that the US subprime crash and the consequent recession will not have any major effect on the Indian IT sector. As an aftermath of financial slowdown, the US businesses are expected to depend more and more on the Indian IT and ITES sector to get their job done by way of outsourcing.
Owing to the easy availability of skilled workforce at a much lower rate and top quality software product, the growth momentum of the Indian IT sector and software exports are expected to remain more or less same in the near future. The projected growth rate is 33% for the year 2008. Software export from India is expected to account for more than 40 billion US dollars by the end of 2008 financial year.
Based on the strong export potential of India's IT industry, the volume of software exports from India is expected to reach the US$ 60 billion target, set for the 2010 fiscal year.