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Nasscom projects 12-14% software export growth during next fiscal

IT-BPO industry body Nasscom on Tuesday said currency volatility will result in the sector missing the earlier export growth target of 13-15 per cent this fiscal, and projected a flattish 12-14 per cent growth in FY16.

“In effect, we are in continuity of that percentage (achieved in FY15), not going up or down,” the body’s president, R Chandrashekhar, told reporters here. For FY15, Nasscom said exports are likely to grow at 12.3 per cent on a reported currency basis, below the lower- end of the 13-15 per cent target set earlier, to $98.5 billion.

Nasscom Chairman R Chandrasekaran attributed the miss largely to a 0.8 per cent impact due to currency fluctuations, saying that if not for the movement in the non-dollar currencies, the growth number could have been 13.1 per cent. Vice-chairman of the body, BVR Mohan Reddy, said up to 40 per cent of the forex revenues for IT companies come in from non-US dollar currencies which have been impacted, hence pulling down revenues.
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