India's IT exports to reach $80b

India's exports from the information technology sector is expected to reach $80 billion by 2011 from the current level of $37 billion, said India's Telecom and IT minister, A Raja.
Raja, who was speaking at the All India IT export awards instituted by Electronics and Computer Software Export Promotion Council (ESC) in New Delhi, said that there is a need for tapping newer markets such as Europe, Japan, China and West Asia to reduce dependence on the USA.
“Our IT exports were a few million dollars in the early 90's and now it is around $37 billion. We are confident that our exports will boom despite the perceived odds against outsourcing and increasing competition,” the minister said.
He said with an average growth rate of 30 per cent per annum, the IT exports turnover would touch $80 billion by 2011.
The minister, however, said that rupee appreciation has considerably affected the margins of IT companies.
“Undoubtedly, this is a challenge (rupee appreciation) that we have to face in the coming years," the IT minister said. He said the government was looking into the extension of STPI scheme, which would offer tax benefits to companies till 2010.
The information technology ministry is also planning to connect the country with a network of communication technologies using optic fiber and wireless connections and providing facility to interact in 22 languages, he added.