Karnataka, Tamil Nadu & Telangana together make up for more than 60% of IT Exports

The growth of exports in Computer Software & Services fell down to less than 10% in 2016-17, the lowest in the last 5 years. The three South-Indian states of Karnataka, Tamil Nadu & Telangana account for more than 60% of all the total exports.  

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Computer Software & Services also known as Information Technology (IT) & IT enabled services have significantly contributed to the national for more than a decade now. As per the latest estimates of the Department of Commerce, Computer Software & Services exports reached 7.44 lakh crore in 2016-17. The three southern states of Karnataka, Tamil Nadu & Telangana together make up for more than 60% of these exports. Add Maharashtra to the list, the share of these four states goes up to 75% in total exports.

Exports have more than tripled in the last 9 years

The IT-ITES exports have grown steadily from 2.27 lakh crore in 2008-09 to 7.44 lakh crore in 2016-17. They have more than tripled in these 9 years. The greatest growth during this period was seen in 2012-13, when exports grew by more than 50% of the previous year. The exports crossed the 5 lakh crore mark in 2013-14.Among the various regions, it is the South that has been dominating IT-ITES exports from the beginning. Southern states alone contributed more than 5 lakh crore worth of exports in 2016-17. The exports have more than tripled in both the Northern states & Southern between 2008-09 and 2016-17.

The share of the Southern states in All-India exports increased from 61.68% in 2008-09 to 67.22% in 2016-17. On the other hand, the share of Western states decreased from 20.99% in 2008-09 to 14.55% in 2016-17. The share of the Northern states increased marginally from 14.38% in 2008-09 to 15.64% in 2016-17.

Karnataka still leads with 37% share in exports

In 2008-09, Karnataka’s share in total exports was 32.11% followed by Maharashtra with 20.41%. The only other states with more than a 10% share in total exports were Tamil Nadu & Andhra Pradesh. The difference in the share of exports between Karnataka & the next state was about 11.6%.By 2016-17, Karnataka’s share in total exports increased to 36.81% followed by Tamil Nadu with 13.43%. The share of Maharashtra fell down to 13.37% from over 20% in 2008-09. The only other state with more than a 10% share is Telangana. In 2016-17, the difference between Karnataka’s share and the next state increased to 23.5%, two times the difference in 2008-09.

Exports cross Rs 1000 crore each in 15 States

In 2008-09, IT-ITES exports were more than Rs 1000 crore each in 11 states, more than Rs 5000 crore each in 8 states and more than Rs 10000 crore in 6 states. In 2016-17, exports were more than Rs 1000 crore each in 15 states, more than Rs 5000 crore each in 12 states and more than Rs 10000 crore each 9 states. Exports were more than Rs One lakh crore each in Karnataka & Tamil Nadu while it was more than Rs 50000 crore in 3 other states. A total of 26 States/UTs had contributed to IT-ITES exports in 2016-17.

Growth falls to less than 10% in 2016-17

The annual growth rate of export of Computer Software & Services fell down to less than 10% in 2016-17, for the first time in the last 5 years. In 2013-14, exports of fifteen (15) states grew at more than 25%. In 2014-15, only 10 states grew at 20% or more. In 2016-17, none of the states recorded a growth in exports of more than 20%. Of the states with major exports, Uttar Pradesh grew the fastest in 2013-14 while Karnataka recorded the highest growth in 2014-15. In 2015-16, it was Haryana’s turn while Telangana recorded the highest growth 2016-17.