Karnataka’s IT exports to grow 20% this year: CM

Karnataka’s IT exports to grow 20% this year: CM

New Delhi: IT companies in Karnataka had already registered exports worth Rs38,000 crore in the first six months of this fiscal and were on course to increasing last year’s figure by 20% to reach Rs90,000 crore by the end of financial year 2010-11, Karnataka chief minister B. S. Yeddyurappa said here, inaugurating ‘Bangalore IT.biz’, the state’s annual IT event.

He also announced an investment promotion subsidy for the semiconductor industry, to entice them to set up units in tier II and tier III cities like Mysore, Mangalore.

Land acquisition for the newly proposed 10,000 acre IT Investment Region project at Devanahalli, near the Bangalore International Airport on the city’s outskirts, had begun, he said. The project is for an integrated township catering to the IT and ITeS sectors, as well as the IT hardware industry.

Karnataka IT Minister Katta Subramanya Naidu said the acquisition of 2,000 acres of land for the ITIR has begun and the process of securing the remaining 8,000 acres would start soon. “It’s the biggest IT project undertaken anywhere in the country," Naidu said.

Naidu also said that Karnataka and Israel were set to sign an MoU in the area of semiconductors.

Infosys Technologies CEO S. Gopalakrishnan said that growth in IT was better than expected, and the strong showing so far would mean that overall, IT exports are estimated to grow between 13% and 15% in 2010-11, up from about five per cent in the previous year, he said. Top companies like Infosys and TCS produced double digit growth in revenues and profits in the last quarter. While Infosys grew by 12.1%, TCS grew by 13% in the quarter closing September 30.

“The IT-BPO industry is expected to touch around $71.7 billion this year, accounting for about 5.8% of our GDP", Gopalakrishnan said.

He said the IT industry would create 1.5 lakh to 1.7 lakh jobs in the current fiscal. “This is only assuming growth is around 10 per cent".

PTI inputs were used for this story