After gradually losing its share to exports in the last decade, the dome{tic IT market has rebounded with a 24 per cent growth in the last fiscal as against 17 per cent in software exports, according to Dataquest Top 20 survey.
Domestic market growth has overtaken software exports' 17 per cent growth. However in terms of size of the market, domestic sector at Rs 33,374 crore (Rs 333.74 billion) in 2003-04 is way behind the export revenue of Rs 40,870 crore (Rs 408.7 billion), it said.
The overall Indian IT industry is estimated at Rs 92,924 crore (Rs 929.24 billion).
If business process outsourcing and hardware exports are added to overall IT exports from India then the figure for growth in exports comes to 24 per cent, the survey says. Dataquest quoted Nasscom figures for BPO exports for 03-04 and said they grew 45 per cent as against 59 per cent in 02-03 while hardware exports, which showed negative growth of 14 per cent in 2002-03, increased by 59 per cent to Rs 2300 crore (Rs 23 billion). BPO exports last fiscal were Rs 16380 crore (Rs 163.8 billion).
The growth of domestic IT market in 2003-04 compares favourably with the previous year growth of nine per cent while the pace of increase in software exports slowed down to 17 per cent in last fiscal from 26 per cent in 2002-03.
In the domestic market, services grew by 26 per cent and hardware by 23 per cent. One of the few areas of decline in domestic market was training industry, which showed a negative growth for third year in a row.
The appreciating rupee took its toll on software exports, which grew 25 per cent in dollar terms and 17 per cent in rupee terms.
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