STPI-H exports cross $ 1-bn mark

CIRCUIT EC / Hyderabad

For the first time, software exports from Andhra Pradesh crossed the $1 billion mark recording a 37 percent growth at Rs 5,025 crore ($1.1 billion) for the 2003-04 fiscal as against Rs 3,668 crore in previous

fiscal. According to the Hyderabad centre of Software Technology Parks of India (STPI-H), the target set for the current financial year is Rs 7,000 crore at an ambitious growth rate of 40-45 percent. Of this, IT services exports have grown by 19 percent and ITeS by 66 percent. The growth rate of STPI-H surpassed the national average of 29 percent and a modest export growth of 26 percent in the previous year. The hardware sector in the state performed poorly in 2003-04 registering a mere Rs 35 crore in export revenue.

About 119 new units registered with STPI-H during 2003-04 including 28 foreign companies, 14 units floated by NRIs and 77 Indian enterprises. With new registrations, the total number of units registered with STPI-H was up at 1,520, while about 460 units were delisted during the last financial year owing to various reasons such as non-compliance of rules and regulations and failure in reporting business details. About 40 units have come up in other parts of the state. During the current financial year, about 19 new units have been added.

“Exports from STPI-H account for about eight percent of total domestic IT exports and the centre continues to be the fourth largest software exporter in the country after Bangalore, Noida and Tamil Nadu. Andhra Pradesh is rapidly catching up with Tamil Nadu. Although the ITeS segment with 66 percent growth contributed significantly to the state export basket (47 percent), the overall scenario for the IT sector is optimistic,” M Vijay Kumar, director, STPI-H, said.

“ So far, the investment by the AP government on some areas stands at a meagre Rs 4 crore and Rs 70 crore as part of equity in the Hitec City project with L&T Infocity. Even this contribution is in the form of allocating land as part of its 11 percent equity in the project. The revenue earned by STPI-H from IT units in the state should be considered for reinvestment,” Mallikarjuna Rao of Hyderabad Software Exporters’ Association (Hysea) said.