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Table 1: The Indian software Industry revenues 1990-1995 (millions of United States dollars)

	1990-91	1991-92	1992-93	1993-94	1994-95
Domestic	115	140	163	230	350
Exports	128	164	225	330	485
Total	243	304	388	560	835

Source: NASSCOM, The Software Industry in India, 1996: Strategic Review

Table 2: A break-down of Indian software activities

Software Activity	Domestic	Export
Turnkey	37.8 per cent	-
Professional Services	-	49 per cent
Products and Packages	38.3 per cent	11 per cent
Consultancy	7.0 per cent	25 per cent
Training	6.4 per cent	-
Data Processing	8.2 per cent	9 per cent
Other	2.3 per cent	6 per cent

Source: NASSCOM, 1996, p. 14

Table 3: Average basic monthly software salaries in India

Worker	Salary (Rs./month)	Salary US$/month PPP* $/month
Entry level, non-computing qualification	4,500	140563
Entry level computing qualification	6,600	210825
Programmer - 1 year experience	9,000	2901,125
Programmer - 2 years experience	12,000	3801,500
Programmer - 3-4 years experience	13,500	4301,688
Analyst/Programmer - 5 years experience	15,500	4901,938
Systems Analyst - 5 years experience	19,000	6102,375
Systems Analyst - 8 years experience	22,500	7202,813
Project Manager - variable experience	20-40,000	640-1,2702,500-5,000
Average over whole industry	14,500	4601,842

Source: Heeks, 1996, p. 115

* Purchasing power parity, source for conversion factor: World Bank, 1997, p. 249

Table 4: Monthly charges made by United States and Indian software companies (in US$)

Source: Heeks, 1996, p. 117

* Agency refers to companies supplying software professionals to provide temporary software services on a contractual basis

Table 5: Policies that affected the Indian Software Industry

Year	Policy Action	Details
1972	Software Export Scheme	Hardware imports were permitted for the purposes of software development on the condition that the price of the hardware was recouped through foreign exchange earnings within 5 years
1976	Further liberalisation of policies related to the software industry	Hardware import duties reduced from over 100 per cent to 40 per cent; faster clearance of software export applications; software exporters could take advantage of export incentives including locating in EPZs; non-resident Indians allowed to import hardware for the purposes of software export with a 100 per cent export obligation
1981	Stricter controls on imports	Import duties on hardware were raised but firms were allowed to use the hardware for the development of domestic software as well as for exports; Software exporters could also import "loaned" computers
1984	New Computer Policy	Import procedures for hardware and software simplified; import duties for hardware and software reduced from 135 per cent to 60 per cent for hardware and 100 per cent to 60 per cent for software; software was recognised as an industry and licensing procedures were simplified; improved access to foreign exchange for software firms; income tax exemption on net export earnings was reduced from 100 per cent to 50 per cent.
1986	Computer Software Export, Software Development and Training Policy	Imports of hardware and software were further deregulated, anyone could import software at 60 per cent duty. 100 per cent export oriented software production units were permitted to import hardware duty free; Indian firms were allowed to sell foreign software, i.e. they could become distributors; export obligations for hardware importers increased by 50 per cent and the time in which to meet the obligations reduced to 4 years;
1988	Software Technology Parks of India Scheme	Creation of software technology parks for the production of software for export (see box 1)
1991	The Economy-wide Liberalisation Programme	Devaluation of the Rupee; partial convertibility of the Rupee; abolition of foreign exchange for travel tax; reduction in telecommunications charges for satellite links; duty-free and obligation-free imports of telecommunications equipment in the STPs; reduction of import duties on software in 1994 to 20 per cent for applications software and 65 per cent for systems software and in 1995 to 10 per cent for both; liberalisation of hardware import duties and loans for importing hardware given certain export obligations; export obligations could be met from earnings from on-site services
1992	Recent Tax Policies	Software exports brought under the Income Tax Act exempting exporters from income tax; confirmation of this status occurred on an annual basis until 1995 when confirmation became open-ended. Because software exports were brought under the same chapter of the tax code as merchandise exports, some of the benefits were eroded due to the different characteristics between merchandise and software exports. Income tax exemption offered to EPZs and 100 per cent export oriented units was extended to software exports from companies taking part in these schemes which were established in or after 1993.

Sources: Heeks, 1996, pp. 42-49; Evans, 1992; Sen, 1995