Piracy on personal computers in India fell to 69 per cent for 2007 from 71 per cent in 2006. However, industry losses due to it rose to $2 billion (around Rs 8,500 crore) in 2007 from $1.28 billion in 2006. Globally, the loss increased by a whopping 500 per cent from $8 billion to $48 billion.

These are among the findings of the fifth annual global PC software piracy study released today by the Business Software Alliance, an international association representing the global software industry.

Of the 108 countries included in the report, the use of pirated software dropped in 67, and rose in only eight. However, because the global PC market grew fastest in high-piracy countries, the rate of PC software piracy worldwide increased by three percentage points to 38 per cent in 2007.

"The report shows we are making progress in the battle against software piracy, albeit slowly as compared to other nations like Russia, whose piracy rate dropped by 7 points in 2007. India, as an IT leader, needs a concrete anti-piracy education, engagement and enforcement plan to effectively reduce software piracy year-on-year," said Keshav S Dhakad, chair of the BSA India Committee.

Piracy rates in India have been declining gradually for the last three years. The Central government, industry bodies and software companies have been taking initiatives and making efforts to curb the menace of piracy, while challenges at various fronts still remain.

Software piracy affects much more than just the industry revenues. A study by industry researcher IDC released in January found that by reducing PC software piracy in India by 10 per cent over a period of four years could generate an additional 44,000 new jobs, $3.1 billion in economic growth, and $200 million in tax revenues.