Slowdown has no effect on State’s software exports

Software exports from Karnataka amounted to Rs. 74,929 crore in 2008-09, an increase of 23 per cent over the previous year.

Announcing the results, based on a compilation of data submitted by companies to the Software Technology Parks of India (STPI), the Karnataka State Information Technology Minister Katta Subramanya Naidu said Karnataka had maintained its share in overall software exports from India at 35 per cent despite “recessionary pressures”.

He said the growth demonstrated that the knowledge sector has “remained unaffected by the recession”. “Karnataka has retained the top position despite the pressures,” he added. Exports from Bangalore accounted for over 97 per cent of the State’s software exports.
Development

Mr. Naidu added that the State had made “serious efforts” to enable development of the industry in Tier II and Tier III cities such as Mangalore, Mysore, Shimoga, Belgaum and Hubli. While exports from Mysore amounted to Rs. 1,374 crore (an increase of 36 per cent), exports from Mangalore grew at 59 per cent amounting to Rs. 644 crore. Mr. Naidu said the State had set a target of $20 billion in 2009-10.

R. Rajalakshmi, Director, STPI-Bangalore, said, Karnataka’s software export revenues were from the 1,200 firms registered with the STPI and software-related special economic zones in the State. During the current year, 84 software units were likely to be established.

This included 35 ventures involving foreign equity, two Indian majors and 47 small and medium enterprises. The new ventures were expected to generate fresh investments amounting to Rs. 465 crore.

Mr. Naidu pointed out that despite the recession, overall employment in the industry had increased.

He said the application of Infosys Technologies Ltd. seeking permission for the conversion of agricultural land for its project at Sarjapur had been cleared by the Government.
Foreign investments

Principal Secretary, Information Technology Ashok Kumar Manoli, said the Government was taking steps to draw foreign investment in the electronic hardware sector.

He said the State was wooing investment in manufacturing wafers and for photovoltaic cells.