The Survey has termed the software industry as one of the fastest growing sector in the economy, with a compounded annual growth rate (CAGR) exceeding 50 per cent during the last five years.

The survey stated that the software industry has achieved a turnover of $6 billion, including exports of $4 billion, during 1999-2000 and is targeting to touch $50 billion by 2008. Quoting nasscom, the survey said that more than 185 of the Fortune 500 companies are outsourcing their software requirements to Indian companies.

Highlighting the major economic reforms in the current fiscal the document indicated that the government had reduced customs duty on several items of IT and telecom sectors. The government permitted up to 100 per cent foreign direct investment in e-commerce and venture capital funds were given complete pass through status.

Talking about the achievements of IT sector, the document said that Indian software industry had achieved the distinction of providing quality services, as 15 of the 23 companies with SCI-CMM level 5 are located in India.

The survey said that many IT multinational companies have set up software development centres or research and development centres in India, 30 per cent of ventures in Silicon Valley of the US are promoted by Indians and around 500 portals are being launched in India every year.

The survey shows that the software exports jumped to Rs 17,150 crore in 1999-2000 from Rs 10,940 crore in the previous year, the domestic software industry has also shot up to Rs 7,200 crore in 1999-2000 from Rs 4,950 crore in 1998-99.

Talking about Information Technology Act 2000, the survey said that the act has been enacted to provide legal framework for facilitating e-commerce, electronic transactions and aims to recognise electronic contracts, prevention of computer crimes, electronic filing of documentation and legalising digital signatures. This would facilitate growth of e-commerce, Internet and induction of IT in critical sectors of the economy.

The survey also mentioned other initiatives such as the community information centre (CIC) project in 486 blocks in the North-East and Sikkim with an estimated cost of Rs 220 crore to provide connectivity at the block level. The project will be completed in two years.

The government has also enacted Semiconductor Integrated Circuits Layout Design Act, 2000 to provide for protection of designs and related matters. The rules required for implementation of act are under formulation.