India’s software service and outsourcing industries are likely to grow 33 percent in fiscal year 2008, with new business in Europe to offset any slowdown in the U.S. economy, according to a new study released Monday.

Diversifying the services beyond the American market would help the industry earn total revenue of US$64 billion (euro53 billion) from April 2007 to March 2008, said Som Mittal, president of the National Association of Software and Services Companies, or NASSCOM, while releasing the study.

NASSCOM is the trade body of technology companies operating in India.

The United States remains the Indian software industry’s biggest market with a share of 61 percent, said the ”Strategic Review 2008” by NASSCOM.

Exports to Europe, however, have grown more than 55 percent since 2004, it said. The United Kingdom now accounts for 18 percent of India’s software services and continental Europe for 12 percent, it said.

The study also said that exports of software and services are likely to cross US$40.8 billion (euro33 billion) for the fiscal year ending March 31, while domestic revenues will touch US$23.2 billion (euro19 billion).

”We are expanding our base and this shows in the diversification of industry from English-speaking countries to Europe and other nations,” said Mittal. ”The industry is managing to grow and diversify geographically.”

The NASSCOM study said companies that earlier provided services to traditionally recession prone industries such as banking and telecommunication are expanding to sectors such as retail, health care and entertainment, which are less likely to be hit in a slowdown.