For the software industry, the year 1998-99 was another good year. While exports showed an impressive 67.5 % growth over last year’s level, the domestic industry also demonstrated a growth rate of over 41%.

In 1998-99, the software industry in India was worth Rs. 15,890 crore (US $ 3.9 billion) and if we add in the in-house development that takes place a many large commercial/corporate end-users, then the total software industry would be close to Rs. 170 billion or US $ 4.1 billion, whereas ten years back, the software industry in India was not more than Rs. 2000 million or US $ 150 million.

Despite these growth rates, India’s share in the total global software market is low, but India still enjoys an advantage over most of the other nations, which are trying to promote exports. However, India commands a 18.2% market share in the global cross-country customized software market opportunity. This is due to the fact that India possesses the world’s second largest pool of scientific manpower which is also English speaking. Coupled with the fact that quality of Indian software is good and manpower cost is relatively low, it provides India a very good opportunity in the world market.

As on 31st March 1999, the software industry in India employed more than 250,000 people and continues to be amongst the fastest growing sectors of the Indian economy. No wonder, software exports has been identified as a thrust area by Government of India, both for software exports as well as in the domestic market, After showing impressive growth in the export market, the recent trend in the industry is to give increased focus to domestic market, so that all possible resources may be enhanced for a ultimate quantum jump in the international market.