The infotech software and services sector will account for 7 per cent of India's gross domestic product and 35 per cent of exports by 2008, the department of information technology said in its annual report for 2003-04.

The department of information technology projected the export potential of the infotech software and services industry in the $57-65 billion range by 2008. This will translate into a 6 per cent share of the relevant global market.

Exports by the infotech-enabled services and business process outsourcing sector are expected to reach $21-24 billion by 2008, about six times the current value of $3.6 billion, according to the department of information technology.

Software and services exports in 2003-04 reached Rs 55,510 crore ($12.2 billion), clocking a growth of 20.4 per cent in rupee terms and 28 per cent in dollar terms.

The industry accounted for about 2.64 per cent of the gross domestic product and 21.3 per cent of exports during 2003-04, the department of information technology said.

During the same period, the infotech-enabled services and business process outsourcing sector also grew 54 per cent, registering an export revenue of $3.6 billion. Software exports to Europe grew 18 per cent and reached Rs 10,200 crore ($2.1 billion) in 2002-03.

North America, which accounts for 50 per cent of global infotech spending, is expected to continue to dominate Indian software exports, according to the department of information technology.

According to data released by the department of information technology, the number of professionals employed in the infotech and the infotech-enabled services sectors reached 813,500 in 2003-04.

The infotech software and services export industry absorbed 260,000 professionals, whereas about 245,500 people were employed in the infotech-enabled services and business process outsourcing sector.

Of the remaining, the domestic software market employed 28,000 professionals and over 2,80,000 got jobs in user organisations.

During the year, the department of information technology implemented the National Action Plan for e-governance, covering 10 major components like core e-projects, core infrastructure, integrated service projects, support infrastructure, core policies and human resource development.

The department of information technology formulated the 'Vidya Vahini' and 'Gyan Vahini' programmes to provide connectivity and boost infotech infrastructure in the education sector.