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IT & ITeS: Feb 2011

February, 2011

Information technology enabled services (ITeS) is the fastest-growing segment across the IT services and software segments and accounts for 20 per cent of the country’s IT industry (including hardware). Total revenues in India’s information technology (IT) industry touched US$ 73.1 billion in 2009–2010 compared with US$ 70.5 billion in 2008–09, growing at 3.7 per cent. The Indian IT & ITeS industry is primarily concentrated in seven clusters—Bengaluru, NCR-Delhi, Hyderabad, Chennai, Pune, Mumbai and Kolkata. The contribution of the IT industry to India’s GDP has grown from 1.2 per cent in 1997–98 to 6.1 per cent in 2009–2010.

The country’s IT/ ITeS exports have grown at a compound annual growth rate (CAGR) of 23.1 per cent between 2005–06 and 2009–2010. The industry added 90,000 new jobs in the 2009–2010, taking the total number of employees to 2.3 million. It also generated around 8.2 million indirect jobs. India’s technology sector witnessed mergers and acquisitions (M&A) deals worth US$ 1.7 billion* in 2009–2010.

The Indian IT services exports is estimated to grow by 5.8 per cent to reach US$ 27.3 billion in 2009–10E. The IT services segment comprises of project oriented, outsourcing, and support and training. Sales of notebooks and netbooks grew by 43 per cent y-o-y to 1.1 million between April and September 2010, while the personal computer (PC)

The sector was deregulated in the 1990s to allow private-sector participation. 100 per cent FDI is allowed through the automatic route.

Sectoral Presentation (November 2010)

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