'India won't miss $60-b software export target'
There is no need to revise the $60 billion export target by 2010 because of the rupee appreciation. The top exporters have safeguards in place to protect their earnings.
By TNN |
NEW DELHI: Software and services association NASSCOM is confident that India won’t miss its software export target of $60 billion by 2010, despite the rupee continuing with its relentless rise.
“There is no need to revise the $60 billion export target by 2010 because of the rupee appreciation. The top exporters have safeguards in place to protect their earnings,” outgoing NASSCOM president Kiran Karnik said on Wednesday.
The appreciating rupee, which has risen almost 11 per cent in the last few months, would impact bottomlines of most companies, with BPOs and small and medium enterprises (SMEs) being the worst hit.
“There won't be any significant impact of the rupee appreciation on the toplines. As far as profitability is concerned, the impact will be less on the bottomlines of big IT companies. Small IT companies that have less levers like hedging to deal with currency fluctuation would get more impacted,” Mr Karnik said.
The association has been lobbying for the extension of the software technology park (STP) scheme which it says would help small and mid-sized software exporters deal with the impact on margins due to an appreciating rupee.
“Despite the rupee appreciation, we don't see any slowdown in demand. Our only concern is on the supply-side on having enough people to meet the demand,” said NASSCOM chairman and Cognizant vice-chairman Lakshmi Narayanan.
“There is no need to revise the $60 billion export target by 2010 because of the rupee appreciation. The top exporters have safeguards in place to protect their earnings,” outgoing NASSCOM president Kiran Karnik said on Wednesday.
The appreciating rupee, which has risen almost 11 per cent in the last few months, would impact bottomlines of most companies, with BPOs and small and medium enterprises (SMEs) being the worst hit.
“There won't be any significant impact of the rupee appreciation on the toplines. As far as profitability is concerned, the impact will be less on the bottomlines of big IT companies. Small IT companies that have less levers like hedging to deal with currency fluctuation would get more impacted,” Mr Karnik said.
The association has been lobbying for the extension of the software technology park (STP) scheme which it says would help small and mid-sized software exporters deal with the impact on margins due to an appreciating rupee.
“Despite the rupee appreciation, we don't see any slowdown in demand. Our only concern is on the supply-side on having enough people to meet the demand,” said NASSCOM chairman and Cognizant vice-chairman Lakshmi Narayanan.
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