Indian exports are steadily underwriting the country's growth story. Year after year, the numbers have been rising at the rate of 20 per cent. This year, too, trade numbers followed a similar trail, with exports touching US$ 125 billion. According to the department of commerce, merchandise exports for fiscal 2005-06 rose by approximately 25 per cent over the previous fiscal. Software services constitute a major portion of the total package. Demand has been strong in traditional as well as new service sectors—supply management, engineering applications and a host of other such areas.

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