India software export growth slows

The pace of software exports is slowing but India is still on track to draw $8.5 billion from abroad, a trade group said

By staff and wire reports

NEW DELHI, India -- The pace of growth for India's software exports slowed to 52 percent last quarter, an industry association said Thursday.

For the fiscal first quarter, which ran through June, software export sales hit $1.8 billion (86 billion rupees) out of India.

That was up from 57 billion rupees the same quarter last year, according to trade group National Association of Software and Services Companies (NASSCOM).

But the pace of growth slowed from 65 percent the same time last year. Still, NASSCOM Chairman Phiroz Vandrevala said it showed the first quarter wasn't as gloomy as some had expected.

Fro the fiscal second quarter, software export sales are projected to rise 9 percent over the first quarter, NASSCOM said.

It pegs full-year software exports at $8.5 billion.

India's software industry, centered around the city of Bangalore, has been hard-hit by the drop in word technology demand.

But NASSCOM's words of relative optimism, that things aren't as bad as might be expected, matched Wednesday's comments by the Indian prime minister.

Atal Behari Vajpayee said India should not be unduly worried by the global slowdown because it is temporary, and Indian fundamentals are strong.

The International Monetary Fund's annual review of India came out this week and suggested plenty of challenges for India.

Reuters contributed to this report.