The Indian IT industry is on track to hit revenues of $64bn, up 33 per cent, by the end of this year and to employ some two million people.

Figures from Nasscom - the National Association of Software and Service Companies - predict software and services exports will be worth $40bn, while domestic sales raise $23bn in the financial year 2008.

By 2010 the association expects the Indian software and services market to bring in revenues of between $73bn and $75bn. Although historically based on providing services to European and US firms, Indian IT firms are increasingly doing more work for other Indian organisations.

Som Mittal, Nasscom's president, said in a statement: "The trends are interesting and findings indicate that the domestic market is poised for growth with IT spends trending upwards particularly by the government."

Mittal said firms were becoming increasingly specialised - a sign of a maturing industry. ®