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Software Exports: SUBMITTED TO: Prof. Navdeep Kaur SUBMITTED BY: Gopesh Virmani Mba - Ib

The software exports industry in India has grown significantly over the past decade. Exports have increased from $50 billion in FY 2010 to $126 billion in FY 2018 while domestic market has grown from $24 billion to $41 billion. The industry employs over 4 million people directly and indirectly and contributes around 8% to India's GDP. However, the industry faces challenges like restrictions on H1B visas, data privacy regulations, and increased costs.

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Gopesh Virmani
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88 views25 pages

Software Exports: SUBMITTED TO: Prof. Navdeep Kaur SUBMITTED BY: Gopesh Virmani Mba - Ib

The software exports industry in India has grown significantly over the past decade. Exports have increased from $50 billion in FY 2010 to $126 billion in FY 2018 while domestic market has grown from $24 billion to $41 billion. The industry employs over 4 million people directly and indirectly and contributes around 8% to India's GDP. However, the industry faces challenges like restrictions on H1B visas, data privacy regulations, and increased costs.

Uploaded by

Gopesh Virmani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Software Exports

SUBMITTED TO: Prof. Navdeep Kaur SUBMITTED BY: Gopesh Virmani


MBA -IB
GLOBAL IT
INDUSTRY
GLOBAL
MARKET
vs
KEY MARKET
 GROWING DEMAND
ADVANTAGES  COMPETITIVE ADVANTAGE
OF INDIAN IT  POLICY SUPPORT
SECTOR  GLOBAL FOOTPRINT
MARKET SIZE

EXPORT DOMESTIC

2009-10 50 24

2010-11 59 29

2011-12 69 32
MARKET SIZE 2012-13 76 32
OF INDIAN IT
SECTOR 2013-14 87 32

2014-15 98.5 34

2015-16 108 35

2016-17 117 37

2017-18 126 41

2018-19* 137 44
MARKET SIZE
160

140

120

100

80

60

40

20

0
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19*
EXPORT DOMESTIC
1999-00 17,150

2000-01 28,350

2001-02 36,500

2002-03 46,100

2003-04 58,240

2004-05 80,180

2005-06 104,100

2006-07 141,000

IT EXPORTS 2007-08 164,400

FROM 2008-09

2009-10
216,190

237,000
INDIA(crores) 2010-11 268,610

2011-12 332,769

2012-13 412,191

2013-14 527,292

2014-15 501,400

2015-16 576,310

2016-17 651,000

2017-18 701,520
IT EXPORTS FROM INDIA(CRORES)
800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0
SECTOR WISE BREAKUP(FY 2018, bn $)

IT SERVICES 86

BUSINESS PROCESS MANAGEMENT 32


SECTOR WISE
BREAKUP OF
MARKET
SOFTWARE PRODUCTS AND
33
ENGINEERING SERVICES

HARDWARE 15
22%
IT SERVICES

BPO
57%
21% R&D & SOFTWARE
PRODUCTS
IT SOFTWARE & ENGG.
BPM
SERVICES SERVICES

2008-09 25.80 9.90 8.80

2009-10 25.80 11.70 10.00

2010-11 33.50 14.10 11.40


TRENDS IN 2011-12 39.90 15.90 13.00
EXPORT
2012-13 43.90 17.80 14.10
REVENUE(mn $)
2013-14 52.00 20.00 14.00

2014-15 55.50 23.00 20.00

2015-16 61.00 24.40 22.40

2016-17 66.00 26.00 25.00

2017-18 70.00 28.00 28.00


TRENDS IN EXPORT REVENUE(MN $)
80.00

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
IT SERVICES BPM SOFTWARE & ENGG. SERVICES
USA 62.00

UK 17.00

EUROPE 11.00
COUNTRY
WISE
EXPORTS ASIA 8.00

Rest Of World 2.00


COUNTRY WISE EXPORTS

8% 2%

11% USA
UK
EUROPE
17% ASIA
62%
Rest Of World
2008-09 5.80

2009-10 6.10

2010-11 6.40

2011-12 7.50

2012-13 8.00
SHARE IN
GDP(%) 2013-14 8.10

2014-15 9.50

2015-16 9.30

2016-17 7.70

2017-18 8.00
SHARE IN GDP(%)
10.000

9.000

8.000

7.000

6.000

5.000

4.000

3.000

2.000

1.000

0.000
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Year/
Segmen 2013- 14 2014- 15 2015- 16 2016- 17 2017- 18
t

IT
Services
1.6 1.74 1.846 1.921 1.984
&
Exports
EMPLOYMENT
GENERATED(mn)
BPO
0.989 1.03 1.086 1.152 1.191
Exports

Domesti
0.699 0.745 0.758 0.79 0.793
c Market
EMPLOYMENT GENERATED(MN)
2.5

1.5

0.5

0
IT Services & Exports BPO Exports Domestic Market
2013- 14 2014- 15 2015- 16 2016- 17 2017- 18
 Tata Consultancy Services
 Infosys
 Wipro
MAJOR IT  HCL Technologies
EXPORTERS  Tech Mahindra
 Oracle
Major Benefits:
 Customs Duty Exemption in full on imports.
 Central Excise Duty Exemption in full on indigenous procurement.
 All relevant equipment / goods including second hand equipment

SOFTWARE can be imported (except prohibited items).

TECHNOLOG  Equipment can also be imported on loan basis/lease.

Y PARKS  100% FDI is permitted through automatic route.


 Sales in the DTA up to 50% of the FOB value of exports permissible.
 Use of computer imported for training permissible subject to
certain conditions.

 Depreciation on computers at accelerated rates up to 100% over 5


years is permissible.
 Duty free import/domestic procurement of goods for
development, operation and maintenance of SEZ units
SPECIAL  100% Income Tax exemption on export income for SEZ
ECONOMIC units under Section 10AA of the Income Tax Act for first
ZONES 5 years, 50% for next 5 years thereafter and 50% of the
ploughed back export profit for next 5 years.
 H1-B VISAS
 ECONOMIC SLOWDOWN
CHALLENGES  DATA PROTECTION & PRIVACY RULES

FACED BY IT  DOMESTIC CHALLENGES

SECTOR  NEGATIVE REPUTATION AROUND THE WORLD


 ECONOMIES OF SCALE
 ABSOLUTE COST ADVANTAGE
BARRIERS IN  SWITCHING COSTS
IT SECTOR  INCOMPLETE INFORMATION
 ALLIANCES
 MANDATORY UPDATIONS

STRATEGIES  QUALITY PRODUCTS


 AFTER SERVICES

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