Information Technology is a sector that came into emergence after India’s Independence, the IT-ITeS sector has come a long way to become one of the pillars of modern India.
One of the biggest reasons behind the rapid development of software industry is its vast reservoir of technically skilled manpower which has played a huge part in transforming India into a software super power.
India spends $1.6 bn annually on training workforce in the sector. The industry has emerged as the largest employer within the private sector as it employees close to 3.9 million people. The country is transforming into a digital economy with over 450 mn plus internet subscribers and they are second only to China.
As things stand now, the Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. It’s cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US and this is what makes it stand apart from the rest of crowd for the global sourcing market.
The National Optical Fibre Network (NOFN) has sets its sights on connecting all 250,000 Gram Panchayats (village council) in the country with high-speed broadband.
Apart from this, there is up to 100% FDI that is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services.
The IT-BPM industry stood at $177 bn in 2019 and there are forecasts where it can grow to $350 bn by 2025. The IT-BPM industry has become the largest contributor to the total exports of the country, with 43% of the IT-BPM services being exported in 2018.
As far as the total revenue from IT services and BPM for FY2019-20 is concerned, it accounts for $135 bn. And, the Indian data centre industry has attracted an investment of $396 million in 2020.
India has emerged as the global digital capabilities hub as there are around 75% of global digital talent present in the country which makes this sector a ripe business opportunity in the country.
And then there are the various government schemes that is aimed at attracting investments in this sector:
- Skill development and R&D
Around $ 1.6 bn is being spent on an yearly basis on training workforce and growing R&D
- The National Optical Fibre Network (NOFN)
More than 68,889 Gram Panchayats are currently connected by optical fibre
- Digital India campaign
This is a central government scheme where a $ 20 bn Investment is aimed at covering mobile connectivity across India
- Start-up revolution
There is a start-up revolution in the country – IoT, machine learning, artificial intelligence and healthcare are on the upward growth
- Artificial Intelligence
AI/ new-age technology is playing a huge part in boosting India’s annual growth rate by 1.3 per cent by 2035
- Atmanirbhar Bharat
Another PLI scheme for Electronic and Technology products worth INR 5,000 crores introduced under the Union Government’s Atmanirbhar Bharat 3.0 package