India's software exports: Growth and import intensity

Abstract

India's software exports as a percentage of total exports have increased from 2.37 percent in 1994-95 to 16.5 percent in 2001 -02. The share of Information Technology (IT) and Information Technology Enabled Services (ITES) industry in India's GDP is expected to increase from present 1.4 percent to 7 percent by 2008. IT and ITES exports currently account for 8 percent of foreign exchange inflows and is expected to increase to 30 percent in 2008. The present paper attempted to analyse India's software exports focusing on two aspects: i) the growth of software exports, and, ii) the import intensity of software exports. The major findings of the study are: (i) government initiatives particularly infrastructural support have played a significant role in improving the export performance, (ii) the import intensity of exports is very high for software exporting firms.