Did Odisha Govt earn in forex profit from software exports?

Odisha and foreign exchange worth Rs. 6500 crore from the software export industry in FY 2022-23. Odisha recorded around 22% growth from software exports in 2012-13, reaching a value of Rs. 1970 crore. This year, the state has reached another financial milestone by reaching another peak, thanks to the Odisha software industry. 

In this article, we will examine the software export growth in Odisha and how it will impact the state’s economy now and in the future.

Software Export Growth

According to official resources, the State’s software exports have consistently grown. Exports by IT units stood at Rs. 1710 crore and Rs. 260 crore for Software Technology Parks of India (STPI) and Special Economic Zones (SEZs). The biggest software exporter from Odisha is Infosys, followed by TCS (Tata Consultancy Service), Tech Mahindra, and Exilant Technologies. 

Odisha’s software export industry expanded from a valuation of Rs. 1377 crore in 2010-11, by almost 17%, to Rs. 1611 crore in 2011-12. The state government set a target for software exports worth Rs. 20,000 crore by 2020 in the new ICT policy. It aimed to strengthen its quantitative and qualitative talent pool through top-notch reskilling, skilling, and up-skilling programs to provide manpower resources to the Odisha software industry. 

The CM of Odisha, Naveen Patnaik, promoted a more progressive policy framework for IT encompassing Data Center Policy 2021, Electronics Policy 2021, BPO Policy 2022, and IT Policy 2022 that have been instrumental in wooing many giant consultant MNCs and ITs, such as IBM, Concentrix, Deloitte, and Accenture. 

Expert Analysis

The Rs. 6500 crore forex profits from software export will push investors to make Odisha forex a lucrative industry for investors. The rising profits from the Odisha Exchange and Software industry might be a strong point for employment generation and economic growth. 

As several software companies adapt to the work-from-home system and later move towards a hybrid model, productivity has shown a positive trend, driving software exports in the state. Moreover, Odisha’s start-up ecosystem is also highly rated on various performance metrics. The State’s growth in IT and electronics has helped the upward economic movement of IT professionals and contributed toward the workers’ financial health in various other sectors.

Impact on Odisha’s Economy 

The upward trend of the rising forex profits from software exports will continue to grow in the coming years. Odisha‘s government introduced a new policy for the Odisha software industry, focusing more on improving the standards of software and other IT products. As most start-ups and creative freshers are abundantly found in Odisha, the state’s burgeoning ecosystem is boosted for further business growth. Odisha is gaining attention on a national level through the forex profits earned from software exports. 

The state currently stands among other major sectors and states of India, equally contributing to the Indian economy through IT. In 2022, software exports from Odisha crossed the Rs. 7500 crore mark. Odisha’s Electronics Policy 2021 also promoted the state as an attractive destination for Odisha software export. It promoted its software industry by offering a proactive, industry-friendly, and congenial climate with supporting facilities, leading infrastructure, and policy initiatives.

Future Prospects 

Odisha is expected to grow 7.8% during FY 2022-23. The state’s economy is also estimated to grow 8 to 8.5% in 2023-24. According to Odisha’s economic survey report, the industrial sector has been the key growth catalyst, has recorded one of the highest growth rates after COVID-19, and has expanded by almost 19 times. The service sector has also grown by 8.8% in 2022-23. Odisha has also invested heavily in creating capacity for further economic growth. This will only attract more forex activities and drive future profits from Odisha Forex and Odisha Software Export.

Conclusion 

To conclude, due to the progressive policy framework, Odisha’s software export industry generated Rs. 6,500 crore in 2022-23. This growth in forex profits will push investors to participate in forex activities that will further the growth of the Odisha Software industry. The state aims to create employment opportunities to transform Odisha into a new advent of New Orissa. 

Through the Make In India Conclave 2022, the state attracted more than Rs 10.5 lakh crore investments. The industry has been rising ever since the pre-COVID period, and looking at the uptrend and the government’s outlook, the Odisha Software industry is most likely to experience further growth in the years to come. Investors must monitor the state’s economic progress for valuable insights and updates.