Electronic and Computer Software Industry and Exports

Introduction

The IT & Electronics industry is one of the fastest-growing industries in India, both in terms of production and export. In fact, software development and IT-enabled services (ITeS) have made India’s brand equity a force to reckon with.

Information Technology and Business process management (IT-BPM) industry revenue grew 7% y-o-y to reach US$ 191 billion in FY20 and is estimated to grow to US$ 350 billion by 2025. Moreover, revenue from the digital segment is expected to account for 38% of the total industry revenue by 2025. Digital economy is estimated to reach US$ 1 trillion by 2025. The domestic revenue for the IT industry was estimated at US$ 44 billion and export revenue was estimated at US$ 147 billion in FY20.

Advantage India

• By 2020, the Government of India aims to empower at least one person per household with digital literacy skills. For the same, the Government has launched various digital skilling initiatives that are aimed at empowering citizens with the knowhow of using IT and mobile devices.
• The electronic goods export between April 2020 to March 2021 was US$ 11.11 billion and for the month of March 2021 it was US$ 1.40 billion.
• In April 2021, export of electronic goods stood at US$ 978.55 million.
• By 2022, the IT industry in India is expected to increase employment to about 2 million direct hires and 7.6 million indirect hires.
• India has a favourable Government policy and regulatory support for the electronics & IT industry.
• The industry offers a range of services, from low-end application development to high-end integrated IT solutions across multiple verticals, with a well-developed vendor base.
• The IT & software industry in India adheres to quality processes and standards, with most companies aligning operations with international standards.
• Software technology parks and special economic zones in India provide an affordable real estate space for IT companies.

Recent Developments

The Government has a strong focus on transforming the country into cash-less economy. Various Government incentives such as referral bonus scheme to promote the use of BHIM, zero service tax on railway tickets booked online and launch of Aadhaar-based mobile apps are aimed at encouraging digital payments in the country.

On May 2019, the Ministry of Electronics and Information Technology (MeitY) launched the MeitY Start-up Hub (MSH) portal.

ELECTRONICS AND COMPUTER SOFTWARE EXPORT PROMOTION COUNCIL

• The Electronics and Computer Software Promotion Council (ESC) was formed to provide a platform for India’s IT & electronics industry. With exports to more than 200 countries, ESC has successfully steered the direction of electronics and software exports of India. ESC offers a comprehensive database of industry companies, and products and capabilities of all major players.
• The council facilitates import/export collaborations, joint ventures, sub-contracting tie-ups, and technology transfers for industry players.
• It provides access to published reports on markets, products and trade statistics, business opportunities, and government policies.

The IT-BPM industry in India stood at US$ 191 billion FY20.

Source: Assocham, EY, Ministry of Electronics and Information Technology, Economic times, Nasscom.