India's software exports face protectionism

“The industry is alive and kicking after the global crisis,” said Pramod Bhasin, chairman of the National Association of Software and Services Companies.

“But protectionism, sustained unemployment” in developed nations “will be huge continuing hurdles to deal with,” he added.

Nasscom last week forecast India's software and services exports will post double-digit export revenue growth of 13 to 15 percent to hit up to US$57 billion in the year to March 2011.

The extent of the downturn in the United States — which is the main market for India's software giants — is still unclear, Bhasin said at the start of a three-day summit hosted by the outsourcing body in financial capital Mumbai.

But with unemployment in the United States running at just below 10 percent, there are calls for protectionist action to protect jobs, he added.

India's outsourcers earn 90 percent of their revenue from exports — mainly to the United States and Europe.

India's software exports growth projected for next year is still far below the blistering 28 percent export revenue rise clocked in the financial year 2006-07.

Indian software companies, whose breakneck growth has been an important driver of the country's economic modernization, were hit by the global slump as customers put many projects on hold.

The sector accounts for 25 percent of India's overall exports.

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