Nasscom expects IT exports to grow by 12-14 percent in FY16

Mumbai: Country’s IT exports are likely to grow in the range of 12-14 percent in the next fiscal (FY'16) with currency volatility and macro economic headwinds as the primary challenges going ahead. [caption id=“attachment_1996299” align=“alignleft” width=“380”]  Representational Image[/caption] In FY15, IT exports will achieve a 12.3 percent growth on a reported currency basis to USD 98.5 billion, as against the target of 13-15 percent estimated earlier. On a constant currency basis, the revenues are estimated to be up 13.1 percent and body’s Vice Chairman BVR Mohan Reddy said that around 35-40 percent of the industry’s revenues come from non-dollar currencies like euro, which are getting hit at present. The total revenues for the industry, including domestic revenues and e-commerce, are expected to touch USD 146 billion this fiscal and USD 165-169 billion in FY'16. In FY15, the industry added 2.3 lakh jobs and the overall professionals working in the industry stood at 35 lakh people. “We expect that we will continue to maintain current growth, there will be no significant change,” President R Chandrashekhar said, adding the currency volatility and uneven macroeconomic recovery are primary reasons resulting in the export growth number target remaining unchanged. Its contribution to GDP has grown to 9.5 percent from the last year’s 8 percent, Chandrashekhar said. Going digital is the key customer priority which results in discretionary spending for the industry, he said. PTI