The IT & electronics industry is one of the fastest-growing industries in India, both in terms of production and exports. In fact, software development and IT-enabled services (ITeS) have made India’s brand equity a force to reckon with. The Indian electronics products demand is expected to grow at a Compound Annual Growth Rate (CAGR) of 41 per cent during 2017-20 to touch US$ 400 billion by 2020.
IT BPM industry revenues was estimated at around US$ 177 billion in FY 2018-19 with a growth rate of 6.1 per cent.
According to Nasscom, exports in the IT-BPM sector is expected to grow at 7-8 per cent (excluding exchange rate fluctuations). The domestic market is expected to grow at rate of 10-11 per cent and likely to add 130,000-150,000 jobs in FY2018
- India ‘s IT sector market is projected to reach US$ 100 billion by 2025.
- IT-BPM exports from India are estimated to reach US$ 126 billion (IT services – US$ 69 billion; BPM – US$ 28 billion; Engineering and R&D services (ER&D) – US$ 80.94 billion) in FY 19; the Indian IT-BPM industry stands at US$ 181 billion (FY 19); and the industry is largest employer of workforce which is around 4 million people.
- From April-July’19, exports of computer hardware & peripherals and consumer electronics stood at US$ 113.99 million and US$ 148.90 million, respectively.
- 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.
- By 2022, the IT industry in India is expected to increase employment to about 2 million direct hires and 7.6 million indirect hires.
- Exports of consumer electronics from India reached US$ 148.90 million from April- July’19. The top export destinations were USA (US$ 39.89 million), UK (US$ 3.68 million), Singapore (US$ 10.17 million), Israel (US$ 6.91 million) and Belgium (US$ 6.10 million).
- In the technology driven startups, India ranks third in the world (4,750 technology start-ups in 2016)
- India has 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 Indian IT & software industry 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.
- Exports of consumer electronics from India reached US$ 362.11 million in 2017-18. The top export destinations were USA (US$ 95.61 million), UK (US$ 62.97 million), Singapore (51.87 million), Israel (33.86 million) and Belgium (US$ 30.50 million).
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 app 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 India’s electronics and software exports. 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$ 181 billion FY19
Source: Assocham, EY, Ministry of Electronics and Information Technology, Economic times, Nasscom.
* According to a study by Assocham and NEC #- According to Nasscom executive council member and group CEO, WNS Global Services, Mr Keshav Murugesh.