In absolute terms, exports during FY08 will workout to $45 billion (Rs 180,000 crore). "Though IT export growth is significant, it has fallen short of the proposed target set by ESC for the year 2007-08 at 39 per cent in dollars and 36 per cent in rupees. These growth targets had been set taking into cognisance past growth trends and confidence levels of software exporters last year," Sanjiv Narayan, chairman, ESC, said.
The steady appreciation of rupee against the dollar and other major currencies for the last 16 months had adversely impacted the rupee realisation from exports, he said, adding, "Our data compiled from various IT exporters indicate that the fall in rupee realisation from exports was to the extent of 12-15 per cent. This has taken place at a time when real estate prices (rentals and property prices) are skyrocketing and HR expenses - salaries and perks - have increased considerably. Such increases are felt even in tier II and III cities."
According to ESC Executive Director D K Sareen, the need for hedging against currencies and invoicing exports in currencies other than the dollar has been advised to the council's member exporters.
Laying emphasis on beefing up the hardware electronics sector, he said the country could emerge as a hub for repairing electronic gadgets and gizmos such as mobile phones, digital cameras and digital medical equipment.
"Repair of these products are very expensive abroad due to paucity of skilled manpower. India has plenty of hardware technicians who can undertake these activities. But for temporary importation of these goods for repair and exports after repairs, the customs laws and rules have to be amended," he pointed out.
Soft Target
In absolute terms, exports during FY08 will be around $45 billion (Rs 180,000 crore).
Exports to miss ESC's target of 39% in dollar terms and 36% in rupee terms.
