THE INDIAN IT INDUSTRY
Ram ji Kanaujia
Senior Software Engineer at Coforge, specializing in Quality Assurance Testing and Pega Development. ISTQB® Certified professional focused on ensuring excellence in software delivery.
Introduction
Indian Information Technology (IT) industry has played a key role in putting India on the global map.The IT sector has become one of the significant growth sector for the Indian economy. In addition to fuelling India’s economy, this sector is also positively influencing the lives of its people through an active direct and indirect contribution to various socio-economic parameters such as employment, standard of living and diversity. IT sector has played a significant role in transforming India’s image from a slow moving bureaucratic economy to a place of innovative entrepreneurs and a global player in providing world class technology solutions and business services.
The IT sector has increased its contribution to India’s GDP from 1.2% in 1998 to almost 10% in 2020-21.
When the COVID-19 pandemic has grappled the whole world and economies have been hard hit. The Indian IT industry is still showing positive signs and has the ability to overcome this exceptional catastrophe. It has arisen as a global economic force and a major contributor to the Indian economy in particular and the world in general. Despite the challenges, “India has an exciting opportunity to propel itself on to the world stage as a fastest emerging IT industry”.
Contribution of Indian Government
On January 16th, Union Commerce and Industry Minister Piyush Goyal said that India’s IT industry can play a big role in raising services exports to $1 trillion a year.
In a virtual meeting with a clutch of top leaders from the IT industry, the Union minister assured the government’s full support to the sector. The assurance, which came just days before the Union budget, was a confidence-booster for the sector.
Ministry of Electronics and Information Technology in the month of May 2019 launched MeitY Startup Hub.
Contribution of Indian IT Companies
India’s IT companies like Tata Consultancy Services Infosys Wipro HCL Technologies Mphasis Coforge Hexaware Technologies LTI - Larsen & Toubro Infotech Mindtree Redington India Ltd Tech Mahindra have employed more than one million employees. New IT-based technologies such as Artificial Intelligence, RPA, BPM, Data Science, Cloud Computing, DevOps, Blockchain, Cyber Security etc. are expanding and boosting the demand in the digital economy. As the size of India’s digital economy is increasing, IT companies are establishing their centres in tier II and tier III cities which will further enhance the growth and reduce the existing disparities.
Advantage for IT Industry in India
1. Growing Demand - Expanding economy to propel growth in local demand. Strong growth in demand for exports from new verricals.
2. Global Footprint - Indian IT firms have delivery centers across the world and are well diversifield across verticals such as BFSI, telecom and retail.
3. Competitive Advantage - The Ministry of Electronics and infprmation Technology launched the MeitY Start-up Hub (MHS) portal in may 2019 & IT and ITeS sector in india has a low-cost advantage by being 5-6 times less expensive than the US.
4. Policy Support - Tax expemption of three years in a block of seven years to start-ups under' Start-up India'.
Recommended by LinkedIn
Impact of IT Industry on India
Indian origin CEOs leading industries across the world
Conclusion
One day INDIA will rule the IT Industry.
“Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other” – Bill Gates
References
1. Annual Report “Electronics and Information Technology”, Ministry of Communication and Information Technology, Government of India, New Delhi.
2. Annual Report (NASSCOM)
3. Bodea, Sorin A. Information Technology and Economic Performance
4. The Economic Times
5. Trends of IT Industry in Indian Economy – An Analysis