Domestic Software Activity:
The domestic software market has shown a C.A.G.R. of 46.05% over the last few years. It is expected that by the year 2008, revenues of Indian domestic software market would equal revenues from India�s software and services exports, touching US $ 35 billion by the year 2008.
Over 122 new software products were launched by domestic software companies and over 158 new software products were launched by overseas companies in the Indian domestic market.
There was a 37% growth in CAD/CAM market; 31% growth in RDBMS sales, 46% increase in sale of ERP packages and 35% increase in financial packages. Increased penetration of computers, strict implementation of copyright act and further control of piracy may further strengthen these segments of the market. Software purchases by SOHO market witnessed an all time high growth rate of 61%.
IDC Survey of the domestic market (17th June 2000)
According to International Data Corporation's latest survey (17th June 2000), the domestic spending on information technology products and services has grown to touch Rs 16,538 crore in 1999-2000, against Rs 12,734 crore in the previous year, despite the uncertain market conditions. During the year, the total hardware sector including desktop PCs, servers and peripherals witnessed a 38.6 per cent growth at Rs 9,280 crore as compared to Rs 6,693 crore in 1998-99
IT services spending grew by about 18 per cent at Rs 3,916 crore from Rs 3,326 crore in 1998-99, the survey said, adding that it training and consumables' spending touched Rs 1,722 crore during the year, thus showing about 25 per cent increase over Rs 1,381 crore in 1998-99.
Government Policies:
In India, the success of software industry can be attributed in no small measure to the excellent teamwork between Government and Industry. The Government of India, impressed by the excellent performance of the Indian software industry has provided all support, including fiscal benefits, the availability of high speed data communications and infrastructure, besides ensuring an almost red tape-free system. The government, in fact, has given the red-carpet treatment to this industry. The fiscal benefits include trade free zones, Software Technology Park schemes, zero import duty on software, and 100% exemption on profits from software exports. |
