THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a): The value of software and services exports during the last three years is given below:
Year Value of exports in US$ Bn
2007-08 40.4
2008-09 47.1
2009-10 49.7
(Source : NASSCOM)
(b): A study was conducted in 2008 by NASSCOM regarding the levels of concentration of the
IT / ITeS industry across the country. The study observed that the top 7 locations accounted
for over 90% of the exports in this sector as under:
City State Approx. %age Share of Revenue
Bangalore Karnataka 36
NCR New Delhi, Haryana, Uttar Pradesh 17
Mumbai-Pune Maharashtra 15
Chennai Tamil Nadu 15
Hyderabad Andhra Pradesh 14
Others All other states not listed above 3
(Source : NASSCOM)
(c): The Department of Information Technology, Ministry of Communications & IT, and Government
of India constituted a Task Force in August 2009 to suggest measures to stimulate the growth and
development of IT, ITES and Electronics Systems Design Manufacturing Industry in the country.
The Report of Taskforce suggested measures to stimulate the growth of IT, ITES and Electronics
Hardware manufacturing industry in India and outlines the strategy for improving software exports
from the country.
For improving software exports from the country Government of India has announced stimulus
packages which include following incentives:
1. Government back-up guarantee to Export Credit Guarantee Corporation of India Limited(ECGC) to the extent of Rs. 350 crore to enable it to provide guarantees for exports to difficult
markets / products.
2. An Additional allocation of Rs. 350 crore for export incentive schemes.
3. To restore Duty Entitlement Passbook Scheme (DEPB) rates to those prevailing prior
to November, 2008 and extension of the DEPB Scheme till 31-12-2010.
4. Additional funds of Rs. 1100 crore to be provided for full refund of Terminal Excise
Duty / Central Sales Tax.
5. Refund of service tax on foreign agent commissions of up to 10 percent of FOB value
of exports and refund of service tax on output services while availing of benefits under Duty
Drawback Scheme. The notification vide which the DEPB rates were slashed down was withdrawn
in January, 2009
6. Sun-set clauses for deduction in respect of export profits under sections 10A and
10B of the Income-Tax Act being extended by one more year i.e. for the financial year 2010-11.
7. Fringe Benefit Tax on the value of certain fringe benefits provided by employers to
their employees to be abolished.
