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Domestic software industry to gross Rs 36 b in 1997-98

The domestic software industry, which has been showing a marked maturity over the past few years, achieved a turnover of Rs 24.1 billion in 1996-97. The turnover is likely to touch Rs 125 billion by the turn of the century, the study predicts.

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Though for many years, the domestic software industry has been lagging behind the software export industry, it registered an impressive growth rate of almost 49 per cent over the past five years from a base of Rs 3.2 billion in 1991-92.

The effective amendments in the Indian Copyright Act to curb software piracy and the announcement of zero import duty on software has come as a much needed shot in the arm. Stringent laws to crack down on software piracy and the setting up of a high-speed digital communications backbone will further boost the domestic software industry, the study points out.

To increase penetration of computers, NASSCOM has recommended 'nil or negligible' import duty on computers. The current number of personal computers in the country is estimated to be around 1.8 million, which is even less than a third of the number of the PCs in New York alone.

NASSCOM has also called for the promotion of application software in the country to boost the domestic market which has till now been largely dominated by turnkey and professional services. It has recommended income-tax incentives on application packages developed in the country and tax deduction to the development expenditure of application packages.

NASSCOM has urged the government to set aside at least 10 per cent of the annual budget outlays in priority sectors such as education, health care, entertainment and transportation for investment in information technology.

- Compiled from the Indian media

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