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IT sector earnings likely to grow 22 %
- Export of software and IT-enabled services is expected to touch $68 billion by the end of the current fiscal, up from $57 billion in 2010-11. However, in rupee terms, it has shown a 24 per cent decline due to slowdown in the U.S. and European markets.
- Hardware exports are expected to grow 10 per cent to reach $9.2 billion by March 2012. The overall likely IT sector earnings growth rate for the current fiscal is 22 per cent.
- The optimism also stems from the change in the strategy to look beyond traditional U.S. and European markets and penetrate into the Japan, China, Latin America, Africa and the Middle East markets
- Though Japan, a major contributor to electronic and manufacturing equipment, is the second largest single country market for software exporters, Indian software exports to Japan are only 3 per cent of its total exports. Japan with a manpower shortfall of three lakh offers a big opportunity
- While the U.S. normally accounts for a lion's share of Indian software exports at 62 per cent, its share had fallen to 56 per cent this year, as exports to other markets have improved with EU accounting for 22 per cent and Africa 4-5 per cent
- The Electronics and Computer Software Export Promotion Council (ESC) is also lobbying for tax benefits to SME units to boost their performance following withdrawal of STPI policy.
- At present, while the top 200 companies located in SEZs account for 80 per cent of total software exports, the share of 2,300 small units is a mere 20 per cent.
- The share of products in IT exports is only 3 per cent but this could go up with end-to-end solutions planned for emerging markets
WTO ruling ‘unfair', says China
- The U.S and several other countries, including India, Mexico and Brazil, recently won their battle against China at the WTO on export of raw materials.
- In a ruling, the WTO Appellate Body found China's restraints on export of industrial raw materials, used as key components in steel, aluminium and chemicals industries, to be inconsistent with China's WTO obligations.
- The Appellate Body affirmed a WTO dispute settlement panel's July, 2011, finding, agreeing with the U.S. and rejecting China's attempts to portray its export restraints as conservation, or environmental protection measures, or measures taken to manage critical shortages of supply.
- Mr. Qingbao said China had every right to protect its environment.
- Niu Qingbao (China's Consul-General in Mumbai) said, “I don't think it is very fair” on the part of the WTO. For all member countries of WTO, there is one law — conducting international trade in a fair manner.
- “What applies to China should also apply to other counties. Frankly speaking, India also may be faced with a similar situation. India also sometimes restricts export of raw materials such as iron ore and coal.”
- Ecology is a big problem for developing countries such as China… may not be a big problem for western countries. “For them (western countries) density of population is lower compared to China and India. Damage to our environment will adversely affect future generations,” he said.
- Bilateral trade between India and China touched $73.9 billion in 2011, driven largely by India's imports of Chinese machinery and home appliances. It will touch $100 billion by 2015. The trade volume in 2011 was almost 25 times more than the volume in 2000 ($2.9 billion), Mr. Qingbao said.
- He said around 2,000 Chinese students were studying in Indian universities against nearly 10,000 Indian students studying in universities of China.
- However, Chinese students had been facing some difficulties in getting their visas extended for more than a year.
Indians have $500 billion in tax havens
Indians have an estimated $500 billion (Rs.24.5 lakh crore) of illegal money stashed away in tax havens, CBI Director A.P. Singh said on Monday.
Payment for exports to Iran can be in rupees
- Indian government had created a mechanism whereby payments for exports from India to Iran could be made in Indian rupees instead of convertible currency such as American dollars and Euros.
- A delegation of Indian exporters would visit Iran within a few weeks with the aim of promoting exports to Iran directly
- Now, transactions can be done in rupees through the bilateral arrangement.
