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Nasscom sees IT exports to Japan rising

National Association of Software and Service Companies, the top industry body of software and IT services companies, has decided to focus on Japan for expanding business, aiming to realise Indian exports worth $1 billion by the year 2005-06 from $300 million registered last year.

In a presentation to a Japanese business delegation in Bangalore on Wednesday, Nasscom chairman Arun Kumar said the industry body would set up a special interest group on Japan and soon take a delegation to that country.

Indian software exports to Japan during 2001-02 were to the tune of $300 million, or four per cent of the total software exports.

"Indian software exports to Japan has the potential to go up to $1 billion by 2005 or 2006, and if things go right, it has the potential to go up to $2 billion by 2008," Arun Kumar, who is also president and managing director of Hughes Software Systems, said.

But, he said 'holding tax' is the biggest issue being faced by the Indian IT industry.

Ambassador of Japan to India, Akira Hayashi, said Japan was impressed by the rapid growth of India in the IT sector, adding efforts were required to be made by the government and private sector on both sides to enhance cooperation.

There was a lot of potential and possibilities for IT business between the two countries, Hayashi said. "You (India) are good in software, we are good in hardware. Both ways, we can cooperate."

"We (India and Japan) are working towards realising this objective," he said.

The Japanese delegation included heavyweights like director and advisor of Honda Motor, Nobuhiko Kawamoto, corporate adviser of Marubeni Corporation Hiroshi Matsumura, adviser of Toshiba Corporation Isamu Nitta and president of Cox & Kings (Japan) Chieko Matsui.

Meanwhile, the 31st joint meeting of India-Japan Business Cooperation Committees will be held on Thursday, officials of Federation of Indian Chambers of Commerce and Industry said.

FICCI said Japan's private sector had evinced keen interest to forge new partnerships with Indian industry.

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