INDIAN INFORMATION
TECHNOLOGY INDUSTRY
Presented by:
Govind Singh Kushwaha
Introduction
Information Technology is the fastest
growing segment of Indian industry both
in terms of production and exports.
The IT industry includes products
and services such as software ,
telecommuni- -cation, wireless,
Internet, hardware, peripherals, and
computer.
IT-major source of economy
IT Companies are expected to account for 8-10%
of GDP by 2008 from 2.64% in 2003-04.
IT Exports will account for 35% of the total
exports from India by 2008 from 21.3% in 200304.
India has emerged as a global player in
Information Technology with software exports of
US $ 12 billion in 2003-2004 and $ 17.2 billion in
2004-2005. The revenue from exports of IT and
related services is expected to reach US $ 57
billion by 2008.
India's Strengths in Software
Industry
Highly skilled human resources coupled with
low wage structure.
India currently exports software to around 95
countries around the globe and more than 250
Fortune 500 companies have outsourced some
part of their software requirements from India.
North America and Europe accounted for 86% of
Indian exports in 2000-2001.
Production Profile
of IT Industry
Year
Growth(%)
1999-2000
Production (Rs.
Crore)
52,450
2000-01
68,850
31.3
2001-02
80,124
16.4
2002-03
97,000
21.1
2003-04
114,650
18.2
2004-05
154,200
34.5
27.5
Growth in IT Industry
The Indian software industry has grown from a
mere US $ 150 million in 1991-92 to a
staggering US $ 18.7 billion in 2003.
The industry (exports and domestic combined) is
expected to touch Rs 247,000 crore (US$ 53.2
billion) by 2008 compared to Rs 87,000 crore
(US$ 18.7 billion) in 2003, thus growing at a
CAGR of 23.1 per cent.
IT Service Sector
Growth of the Indian ITES-BPO sector both on-shore as
well as offshore, export revenues from this sector increased
rapidly from US$ 2.5 billion in 2002-03 to US$ 3.6 billion in
2003-04 and further to US$ 5.1 billion in 2004-05.
The IT Sector employs 697,000 people and this is likely to
reach 3 million by 2014.
The industry has introduced new service lines such as
technical help desks, finance and accounting services,
engineering service.
Major initiatives by Department of
Information Technology
Community Information Centres (CIC)
E-governance
E-choupal
E-governance
E-governance denotes the application of IT to
government processes in order to bring about
Simple, Moral, Accountable, Responsive and
Transparent (SMART) governance.
It gives citizens easy access to tangible benefits,
be it through simple applications such as online
form filling, bill sourcing and payments, or
complex applications like distance education
and tele-medicine.
The effective use of IT services in government
administration can greatly enhance existing
efficiencies, drive down communication costs,
and increase transparency in the functioning of
various departments.
E-choupal
The single-largest information technology-based
intervention by a corporate entity in rural India.
Enriching the farmer with knowledge; elevating him to
a new order of empowerment.
e-Choupal delivers real-time information and
customised knowledge to improve the farmer's
decision-making ability, thereby better aligning farm
output to market demands; securing better quality,
productivity and improved price discovery.
The e-Choupal project is already benefiting over 3.5
million farmers. Over the next decade, the e-Choupal
network will cover over 100,000 villages, representing
1/6th of rural India, and create more than 10 million efarmers.
Potential of Indian software and
service Industry by 2008
Category
$ billion
IT Services Exports
28-30
ITES Exports
21-24
Product and Technology
Services
Domestic Market
8-11
13-15
Total
70-80
Governmental incentives to
promote IT
Monitor global IT developments and refine Indian IT
policy to meet global requirements. Specifically, this
will help angel investors, venture creators and
incubation;
Promote the growth of human resource development
in the IT sector with the aim of creating quality-based
education.
Promote R&D in the sector by identifying thrust
areas and drawing up a blueprint for action.
Lowering custom duties on IT products, allowing 100
per cent foreign direct investment (FDI) in the sector.
Future of IT Industry in India
The projected demand for trained I.T.
professionals is estimated at over 400,000 per
year.
Study forecasts more than US$ 57 billion in
exports growth by 2008 for the IT Services and
IT Enabled Services Industry.
Many global software majors have set-up
operations in India. They include Microsoft,
Oracle, Adobe among others.
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