INFORMATION TECHNOLOGY INDUSTRY: EMERGING CONTOURS
- Credit Rating Agency in India
- Industry Report
- INFORMATION TECHNOLOGY INDUSTRY: EMERGING CONTOURS
Of late, the Information Technology (IT) industry has emerged as a major contributor to the industry revenue as well as employment opportunity provider in the country. The sector currently employs around 45 lakh people and contributes about 8 per cent to the GDP of the country. While the Indian IT industry has been driven by software development services in the beginning, the trend is changing. The country has become a Research & Development (R&D) hub of multinational IT companies with several India-based multinational IT giants established their R&D and innovation centres. The Government considers R&D as a pre-requisite to the implementation of the new initiatives such as Digital India, Make in India and Start-up India and has launched new schemes in R&D such as IMPRINT, etc. The government has earmarked ?53,108 crore for IT and telecom sector in the Union Budget 2021-22.
Contribution to GDP
The contribution of the IT & Business Process Management (BPM) sector towards the GDP of the country for the past decade is given below (Figure 1). As can be seen, the IT-BPM sector has been contributing more than 7.5 per cent on average to the GDP of the country for the past decade.