Is there space for more IT Programmers ?

Defintely yes. Especially in India atleast till 2010, there is more than enough space for more programmers. Ofcourse in the IT industry its hard to predict anything, even a few years ahead. So take this advice with a pinch of salt.

There are lots of jobs being created in India now with big 3s (Infosys, TCS, Wipro) gobbling up Engineers in 10,000s ! It is also very visible in Chennai where I stay right now. Lots of construction activity and the expansion drives are really mind boggling. Hope this all leads to a better world for everyone not just the IT folks.