India’s digital economy is estimated to reach US$ 1 trillion by 2025.
India attracted a cumulative FDI inflows worth US$ 62.47 billion between April 2000 and September 2020.
India spends US$ 1.6 billion annually on training its IT workforce.
The Indian IT Sector exports around US$ 100 billion while employing 2.8 million people.
The Indian IT industry is the largest employer within the private sector, employing around 4.36 million people. The industry started off with an export of nearly US$ 100 million and around 5,000 employees in the 1990s. At present, it exports around US$ 100 billion while employing 2.8 million people. The sector has significantly increased its contribution to India’s GDP from 1.2% in 1998 to 7.7% in 2020.
India spends US$ 1.6 billion annually on training its IT workforce, an important priority in a country with around 700 million internet subscribers and a digital economy that is estimated to reach US$ 1 trillion by 2025.
That India is a world leader in the sector is an established fact. The country commanded about 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18 and currently accounts for 75 per cent of the global digital talent. Indian IT & ITeS companies have set up over 1,000 global delivery centers in about 80 countries across the world and the industry grew to US$ 181 billion in 2018-19.
Services provided by the IT sector are 3-4 times more cost-effective than those in developed countries. Abundant talent, creation of urban infrastructure, operational excellence, conducive business environment and an ever-expanding domestic sector are the chief factors that have cemented India’s position in the global offshore IT industry.
Techno-clusters like Bengaluru, Hyderabad, Chennai and Gurgaon, with a plethora of industrial parks and MNShave boosted India’s standing in the global IT industry. Known as “The Silicon Valley of Asia”, Bengaluru is the heart of India’s IT sector and hosts a number of tech parks like Electronics City Phase I & II, ITPL, Bagmane Tech Park, Embassy Golf Links and Embassy TechVillage, among others.
The IT sector raked in revenues to the tune of US$ 180 billion in 2019, with export revenue standing at US$ 99 billion and domestic revenue at US$ 48 billion. The IT sector’s share of total Indian exports increased from less than 4% in FY1998 to about 25% in FY2012, with the United States accounting for two-thirds of India’s IT services exports.
Some of the major initiatives taken by the Government to promote the IT sector in India are as follows:
Some significant developments in the sector have been initiated by private players, complementing various government measures:
The Indian IT industry, with its large pool of professionals and sustained institutional support is confident in consolidating its position in the global market. Having proven its mettle in the past, the Indian IT sector is playing a crucial role in designing the future of New India. And it is doing so at the click of a button.
