The Union Minister for Commerce & Industry Suresh Prabhu releasing the strategy paper & business plan of India’s Computer Software &ITeS and Electronics Export, prepared by Electronics and Computer Software Export Promotion Council in New Delhi

Electronics and Computer Software Export Promotion Council (ESC) has prepared a strategy paper for augmenting software exports to US$ 178 billion by 2022. Union Commerce &Industry and  Civil AviationMinister Suresh Prabhu, released the strategy paper in New Delhi yesterday. The Minister praised the efforts by the ESC for taking this initiative to prepare a strategy for boosting India’s computer software &ITeS and electronics export. The Minister further added that Government of India will extend all possible support to the industry for intensifying the exports to traditional markets and to make forays into the alternate markets like Africa, Latin America and Commonwealth of Independent States (CIS). He said that the government is taking proactive steps for making ICT exports more vibrant and to motivate more units to focus on exports.

The strategy paper highlights the need for some policy level changes that are critically needed, such as resolving visa problems with the US, greater access of professionals to European countries, early signing of Totalisation Agreement with the US, setting up of incubation centres and language proficiency facilities in major IT hubs. The current business model for export of software and ITeS is relevant for outsourcing work. For the emerging markets like Africa and Middle East, a different model, is required since India mostly offers product solutions. Although potential for export of software &ITeS in US and Europe is high, the smaller companies are grossly underperforming because of innovation andtechnology leadership gaps. The paper also spells out specific policy prescriptions, market destinations and other enabling inputs that can bring about transformational changes in the Indian software and services exports. Specific suggestions include judiciously blending software and hardware, creating newer export outlets, fiscal incentives, country specific software export promotion measures.

ICT export strategy proposes visa, mobility and incentive reforms to enhance software and electronics export competitiveness. The ICT export strategy prescribes regulatory and policy measures to boost software, ITeS and electronics exports by addressing visa and professional mobility barriers, pursuing Totalisation Agreement negotiations, creating incubation and language facilities, and promoting market diversification. It contrasts the current outsourcing model with alternative models for emerging markets, highlights innovation and technology leadership gaps in smaller firms, and recommends blending software and hardware, establishing new export outlets, and using fiscal and country specific promotion measures to enhance competitiveness.