Advantage India
Robust
Demand
* India is the export hub for software services.
* India‘s Domestic IT Services market is expected to grow by 3-5% in FY25, also the operating profit for the sector to remain 21-22%.
* India's software service industry is expected to reach US$ 1 trillion by 2030.
* India’s software and IT services, accounted for 56.2% of total services exports in FY24.
Competitive
Advantage
* India has climbed to the 39th position out of 133 economies in the Global Innovation Index (GII) 2024, according to the World Intellectual Property Organization (WIPO).
* Large pool of skilled manpower, especially in the areas of IT & BPM available at a relatively low cost and a rapidly increasing youth population looking to migrate from agriculture to other sectors.
Policy
Support
* The government has launched several initiatives to promote Information Technology (IT) and IT-enabled Services (ITeS). As part of the BharatNet project, 213,398 Gram Panchayats have been prepared to provide services.
* Government is planning to setup over 100 branches of India Post Payment Bank in the Northeast region to enhance banking services.
Increasing
Investments
* The Indian services sector was the largest recipient of FDI inflows worth Rs. 7,34,419 crore (US$ 84.56 billion) between April 2000-September 2024. According to the Ministry of Commerce and Industry, the service sector received US$ 6.6 billion in FDI equity inflows in FY24.
* According to the IVCA-EY monthly PE/VC roundup, October 2022 recorded investments worth US$ 3.3 billion across 75 deals, including six large deals worth US$ 2.2 billion.
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