The survey also indicated that total annual software exports could be to the tune of $10 billion by 2002.

During fiscal 1999-00, infotech exports touched Rs 17,150 crore, registering about 57 per cent rise in rupee terms over Rs 10,940 crore achieved during 1998-99.

"Indian software exports during the current fiscal is likely to fetch a revenue of $6.3 billion," Nasscom chairman Atul Nishar told media persons here.

According to the survey, more than 185 of the Fortune 500 companies have outsourced their software requirements from India. As on June 30, 2000, the market cap of the listed domestic software companies was estimated at $55 billion. The market cap of Indian software industry on Indian bourses was about $4 billion as on January 1999.

The Nasscom survey said about 37 software firms have exported over Rs 100 crore worth of software and services. Prominent software exporters included Tata Consultancy Services, Wipro, Infosys, Satyam, HCL, Silverline and NIIT, Nasscom president Dewang Mehta said.

Nishar said opportunities in e-commerce software solutions would be the next major driver of growth for the Indian infotech sector. The Nasscom-McKinsey study in 1999 had predicted that the country can earn income of $10 billion from e-business solutions by 2008. In 1999-00, IT-enabled services generated total revenue of Rs 2,390 crore for the Indian industry.

The association's NIESA (Nasscom's India Europe Software Alliance) programme has resulted into additional exports to the European Union. During the last fiscal, the exports to the Europen Union were to the tune of Rs 4,030 crore with the UK being the most favoured destination.

Mehta said the main highlight of the year was the focus towards e-governance by state governments. Nasscom is working with several state governments to proliferate the software and IT-enabled services industry. "The government should offer reliable telephone and networking services to maintain growth in the infotech sector," he added.

The Nasscom survey indicated the prevailing physical bonding at Software Technology Park (STP), export oriented units (EOU), export promotion zones (EPZ) units is a major hurdle on the way to growth. The other major factors that hinder growth are lack of global parity in telecom tariff and inadequate telecom infrastructure.