IT INDUSTRY: BOOSTING THE GROWTH OF INDIA
IT INDUSTRY: BOOSTING THE GROWTH OF INDIA
INDIA AND THE IT INDUSTRY
The 21st century is earmarked as Information Technology-driven and India is at the Center of global attraction and is considered as a knowledge powerhouse. The IT industry covers IT services, IT-enabled services (ITES), e-commerce (online business), Software and Hardware products. IT-based services are indispensable for any organization to increase productivity, ease of doing business, and grow efficiently and economically in this competitive world.
Information Technology not only contributed to the economic growth of the country but it has also made governance more competent and approachable. It has made access to government services and information easier and inexpensive. Information technology has also made the management and delivery of government services – such as health services, Educational information, consumer rights, services, etc. more meritorious with enhancing transparency.
The IT industry is the backbone for our economy to prosper exponentially and to generate millions of jobs. Growth in the IT sector will push us to grow at par with China in every sector and will help in grabbing the global market. This will improve the socio-economic status of Indians.
IT AND ITeS :
The IT and ITeS sector comprises of services that are related to information technology, research and development services as well as engineering designs, hardware, and BPO.
IT: The application of computers and telecommunication equipment to store, transmit, retrieve, and manipulate data, in the context of a business or an enterprise.
ITeS: Information technology enabled services (ITES), is a form of outsourced service which has emerged due to involvement of IT in various fields such as banking, finance, telecom, insurance
among others.
Some of the examples of ITES are medical transcription, back-office accounting, insurance claim, credit card processing and many more.
IT has the potential to raise the long-term growth prospects through increased productivity in almost every sector of the economy. Information technology can play a major role in the overall. economic development of the country.
Development of IT sector in India:
India has a comparative advantage in the global IT sector at least in terms of cost. With a large pool of workers having software and language skills, it is in a position to move toward producing higher value-added goods and services. In fact, it has just started to move towards higher value added goods and services.
IT service companies have included new service lines such as package software implementation, system integration, R&D engineering and remote network management whereas ITES-BPO companies have started offering more complex services such as financial research and analytics, actuarial modeling and corporate and business research.
The availability of a large number of workers with a combination of engineering and managerial skills will definitely be helpful to move towards higher value-added goods and services. There are strong complementarities between IT and the rest of the economy.
The use of IT in rural banking and microfinance may enhance efficiency in the informal sector and can impact a broader cross-section of the population. Information access to farmers could benefit the agriculture sector as well.
Farmers can receive weather forecasts, market price quotes, advice on farming practice, offers to buy and sell livestock, and specific training. Even basic education could be enhanced in rural areas with the use of IT.
Employment opportunities:
The IT sector is one of the largest employers of women, and therefore, can play a crucial role in women empowerment and the reduction of gender inequalities. The sector provides flexibility to its employee of operating from home and in working time, which enables women to carry on with jobs with family life. From the analysis, it is clear that IT has the potential of not only accelerating the growth in the Indian economy but also promoting broad based economic development.
IT sector contribution in India’s GDP growth:
India is the world’s largest sourcing destination with the largest qualified talent pool of technical graduates in the world.
In FY21, the Indian IT industry is expected to generate revenue of US$ 194 billion, up 2.3% YoY, according to the National Association of Software and Service Companies (Nasscom). The sector is the largest employer within the private sector. According to Gartner estimates, IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022. As of FY21, the IT industry employed 4.5 million people.
This push towards cloud services has boosted hyper-scale data center investments, with global investments estimated to exceed ~US$ 200 billion annually by 2025. India is expected to gain a significant share in the global market, with the country’s investment expected to hit ~US$ 5 billion annually by 2025.
According to the research findings commissioned by Amazon Web Services (AWS), Indian enterprises and public sector organizations (that migrated from on-premises data centers to cloud infrastructure) can expect to lower their energy and carbon footprint by over 80%.
The Indian mobile gaming market is growing at a pace in tandem with the global trend and is expected to reach US$ 7 billion in 2025. In Budget 2021, the government has allocated Rs. 53,108 crore (US$ 7.31 billion) to the IT and telecom sector.
The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. India’s software services exports (excluding exports through commercial presence) increased by 4% in FY21 compared with FY20 and are estimated at USD 133.7 billion during 2020-21. In 2020, the IT industry recorded 138,000 new hires.
image source
- sector composition: https://www.ibef.org/uploads/industry/Infrographics/large/IT-and-BPM-Infographic-November-2021.pdf
- market size: https://www.ibef.org/uploads/industry/Infrographics/large/IT-and-BPM-Infographic-November-2021.pdf
- keytrends: https://www.ibef.org/uploads/industry/Infrographics/large/IT-and-BPM-Infographic-November-2021.pdf
- India-Would-Become-a-World-Leader-in-Mobile-Technology-Manufacturing-by-2027-feat.: https://www.google.com/url?sa=i&url=https%3A%2F%2Fbeebom.com%2Findia-would-become-a-world-leader-in-mobile-tech-manufacturing-by-2027-it-minister%2F&psig=AOvVaw0ZED6jCTzQwxq-fr8gxCNw&ust=1646281540565000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCIDT1erKpvYCFQAAAAAdAAAAABAV