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
2003-04.

 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 Production (Rs. Growth(%)
Crore)
1999-2000 52,450 27.5
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
 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 e-
farmers.
Potential of Indian software and
service Industry by 2008
Category $ billion

IT Services Exports 28-30

ITES Exports 21-24

Product and Technology 8-11

Services
Domestic Market 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.
THANK YOU