India’s IT sector is the biggest revenue generator and job creator | WeForNews
Mumbai, July 28: India’s already booming information technology (IT) sector received a boost when industry body National Association of Software and Service Companies (Nasscom) predicted that the sector would grow twice as much as India’s Gross Domestic Product (GDP) in the last financial year.
It is an industry worth around $227 billion, which added 4.5 lakh new jobs to bring the total number of direct employees to 50 lakh. More than 44% of new hires were women and their overall share is now 18 lakh.
The IT industry grew by more than 15% in the last fiscal year 2021-22 (April-March).
The central government’s flagship mission, Digital India, has also given the needed boost to the country’s IT industry.
According to the India Brand Equity Foundation (IBEF), in the financial year 2021-22 (FY22), India’s top three IT companies, Tata Consultancy Services (TCS), Wipro and Infosys, were expected to offer 1.05 lakh of job opportunities due to increased demand for talent.
The Indian mobile games market is growing at a pace parallel to the global trend and is expected to reach $7 billion by 2025. The online games market in India is expected to reach $2.12 billion by 2023 from $1.08 billion in 2020, due to rapid growth. increase in consumption.
India’s IT and business services market is expected to reach $19.93 billion by 2025. According to Gartner estimates, IT spending in India is expected to reach $81.89 billion in 2021 and grow still at $101.8 billion in 2022, or 24.31% year-over-year. increase.
IT industry revenue increased 2.3% to $194 billion in FY21. Export revenue increased 17.2% to $178 billion, while domestic revenue rose 10% to $49 billion. In addition, the share of new era digital services has increased by 25% to $13 billion and India has a strong workforce fit for future technologies, Nasscom said.
“This year has been a pivotal year for the tech industry, thanks to the continued focus on customer centricity. The industry added $100 billion in 10 years; the first $100 billion took 30 years,” Nasscom Chairman Debjani Ghosh said.
Computing, a knowledge-based industry, has enormous potential to become an engine of accelerated economic growth, improved productivity for all sectors of the economy and a means of effective governance.
It improves access to information, protects consumers, provides access to government services, makes skills acquisition and training more efficient, improves the delivery of health services and promotes transparency. It offers huge employment potential and linkages between government and people at both rural and urban level, NITI Aayog said.
India’s Communications, Electronics and IT Minister Ashwini Vaishnaw said the tech industry has shown remarkable resilience despite the disruption caused by Covid. “It’s one of the main differentiators of the country,” he said.
Indian IT companies have delivery centers all over the world. The IT and BPM industry is well diversified into verticals such as BFSI, telecommunications, and retail.
According to IBEF, in 2020-21, India ranked third in the world with 608,000 cloud experts across all verticals including technology.
The software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth $81.31 billion between April 2000 and December 2021.
The IT industry accounted for 8% of India’s GDP in 2020. According to Software Technology Park of India, software exports by IT companies connected to it amounted to Rs 1.20 lakh crore in the first quarter of the year. exercise 22.
India’s software products industry is expected to reach $100 billion by 2025. Indian companies are focusing on international investment to expand their global footprint and improve their global distribution centers, IBEF has revealed.
The data annotation market in India was worth $250 million in FY20, of which the US market contributed 60% of the overall value. The market is expected to reach $7 billion by 2030 due to accelerating domestic demand for artificial intelligence.
India’s IT industry exports amounted to $149 billion in FY21. IT services exports were the largest contributor, accounting for more than 51 percent of total IT exports (including hardware). Exports of business process management (BPM) and engineering and R&D (ER&D) products and software accounted for 20.78% each of total IT exports in FY21. The ER&D Market is expected to reach $42 billion by 2022.
The software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows worth $81.31 billion between April 2000 and December 2021. The sector ranked second FDI inflows according to data published by the Department for the Promotion of Industry and Internal Trade (DPIIT). Computer software and hardware account for 14.19% of cumulative FDI inflows.
Prime Minister Narendra Modi has given a lot of importance and support to start-ups in the country. Many IT start-ups – Internet of Things, machine learning, artificial intelligence and healthcare – have started operations and are receiving support from various government programs.
India’s IT startup ecosystem received record investments of almost $36 billion in private companies in 2021, up from $11 billion in 2020.
In the Union budget 2022-23, the allocation for the IT and telecommunications sector stood at Rs 88,567.57 crore.
The government has introduced the STP program, which is a fully export-oriented program for the development and export of computer software, including the export of professional services using communication links or physical media.
According to Invest India, the country is one of the preferred destinations when it comes to setting up Global Capability Centers (GCCs). In FY21, over 1,400 GCCs have over 2,300 GCC units in India, employing over 1.38 million professionals.
Investment in software as a service (SaaS) has increased by 62.5% compared to 2021 and is expected to reach $6.5 billion in 2022. There are more than 1,150 active Indian SaaS companies; 17 of them have achieved unicorn status.
Keeping abreast of the latest technological innovations globally, the Ministry of Electronics and Information Technology has released the National Blockchain Strategy to Reduce Fraud, Accelerate Contract Enforcement and Increase Transparency transactions.
According to a white paper by NITI Aayog, artificial intelligence and new age technologies will boost India’s annual growth rate by 1.3% by 2035.