Increased copyright protection for software could accelerate the growth of the Indian economy by creating new jobs, business opportunities, and increase in tax revenues, according to a global research study by IDC on Expanding Global Economies: The Benefits of Reducing Software Piracy, commissioned by the Business Software Alliance (BSA). 

According to the study, if the software piracy rate in India reduces from 70% to 60% by 2006, it would create 50,000 new high tech high wage jobs for the workforce - more than two and a half times the number now available in the domestically focused portion of India’s software industry. It could also add $2.1 billion to India’s economy and increase local industry revenues by more than $1.6 billion. It could also generate an additional $ 92 million in tax revenues. 

“This report reveals not only how significant the software sector has been for economic growth in India, but how it will continue to be the engine in powering the Indian economy forward. As the software industry is growing more rapidly than traditional industries, it will become a prominent driver of economic growth,” says Jeffrey Hardee, VP and Regional Director, APac, Business Software Alliance. 

"Protection and enforcement of intellectual property rights encourages entrepreneurs to develop innovative products that make businesses operate more efficiently. Entrepreneurs can build their ideas into businesses and the growth of entrepreneurial business creates more jobs for the local workforce. This in turn drives spending in the economy and maximizes its growth potential. Increased tax revenues are generated, which are then used to fund important public works. In short, everyone benefits," Jeffrey adds.

India is projected to have the fastest growing IT sector in the APac region, moving it up from the region’s sixth largest IT sector to its fifth largest by 2006. By further reducing its software piracy rate, India could accelerate the potential even further - growing 167% instead of 148% between now and 2006.

“For the 57 countries studied, we found that the economic impact of even a slight reduction in the amount of pirated software can be dramatic. Therefore, the benefits of lowering software piracy can be substantial to the local economy," says Kapil Dev Singh, Country Manager, IDC India. "More importantly, local industry would gain more than the multinational importers, mostly because so many of the benefits would accrue to local services and channels firms, and because local software firms, which cannot spread their risk across geographies with lower piracy rates, would reinvest in their businesses," he adds further. 

DQCI NEWS BUREAU
MUMBAI

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