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Thursday, June 10, 1999

Thrust on project exports major hindrance to India's entry into Gulf market 

R Sreekumar  
Thiruvanathapuram, June 9: The Gulf market accounts for only two per cent of software exports from India due to Indian companies' overemphasis on project exports rather than on product exports.

India's inability to tap the main Gulf markets of Abu Dhabi and Dubai was revealed during a three-day seminar-cum-expo on Indian IT industry held here last month. The programme was jointly organised by the National Association of Software and Service Companies (Nasscom) and the Indian Business Council, Dubai.

Technopark CEO KG Sateesh Kumar, who along with Kerala's IT secretary Aruna Sundarrajan, led the delegation in the seminar-cum-expo, said there were several reasons for the low volume of Indian software exports to the Gulf region. Gulf countries were more comfortable in dealing with the US and Europe because of the perception of their commitment to quality whereas Indian software had not been sufficiently promoted in Abu Dhabi or Dubai. Proper promotion and creating awareness of the fact that US and Europe inturn outsource software from India can work in the country's favour, he added.

Dubai is developing as a major hub for e-commerce just as Singapore is trying to be the hub of South-east Asia. India can tap the opportunity to host e-commerce services for the UAE. NRIs in the Gulf have the business acumen and the money but are not aware of the opportunities to invest in their home country which has been slowing down NRI investment in recent years. Absence of cyber laws, efficient data communication network and lower PC penetration are hindrances in getting more investment, both domestic and foreign.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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