India IT Exports Grow at Slowest Pace in Ten Years

STAFF REPORT

India’s software exports grew at rate of four percent during  12 months prior to June, 2012 – the slowest pace during the last ten years, according to trade data released by the country’s banking regulator, Reserve Bank of India.

Net software exports, calculated as the difference between software receipts and payments, were $61.5 billion during the period, up by just 4 percent compared with $58.9 billion earned for the same period a year before.

India’s financial daily, The Economic Times, has blamed the decrease in IT exports on the Euro zone crisis and the cost-cutting trends in Western world.

India’s IT export market had shown strong resilience even when the world slipped into recession following the bursting of housing bubble in the United States.

The last time when net export growth fell to single digit was in 2009.

Indian IT players have suffered considerably from the European crisis but they are hoping to get more contracts from US clients in the wake of the financial stimulus announced by the Federal Reserve in September.

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