Identifying embedded software and IT enabled services as the future growth areas, the Electronics and Software Promotion Council on Tuesday said Indian software and electronics hardware exports to South Korea has the potential to grow 40 per cent in 2003-04.

In 2001-02, Indian software and electronics hardware exports to South Korea was $34 million and this has all the potential to grow by 40 per cent with demand mainly coming from developing embedded software for telecom and consumers electronics goods and ITeS sector in 2003-04, D K Sareen, Executive Director, ESC said.

Out of the $34 million, $28 million was the software export turnover and the remaining came from hardware and electronics exports, he said.

He said Indian medium and small IT companies should try to grab opportunities in the South Korean market which has a vision of becoming a the fifth largest IT exporter by 2007.

He said currently a 15 member Korean delegation is in India to work out joint venture and other collaborative areas between infotech companies of both the countries with 10 South Korean SMEs holding roadshows in India in a "match-making" programme.

The delegation would visit Bangalore day after tomorrow to explore possibilities there.