IT Industry in India

The vision of Information Technology(IT) policy is to use IT as a tool for raising the living standards of the common man and enriching their lives. Though, urban India has a high internet density, the government also wants PC and Internet penetration in the rural India.Export markets continue to dominate the domestic segment. The size of the domestic market in software relative to the export markets for Indian software, which was 45.2 percent in 1998- 99, after declining rapidly to 29.8 percent in 2001-02, fell only to 29.1 percent and 27.7 per cent in the two subsequent years.

In Information technology (IT), India has built up valuable brand equity in the global markets. In IT-enabled services (ITES), India has emerged as the most preferred destination for business process outsourcing (BPO), a key driver of growth for the software industry and the services sector

According the data from ministry of communication and information technology, the ITES-BPO industry has grown by about 54 per cent with export earnings of US$ 3.6 billion during 2003-04. Output of the Indian electronics and IT industry is estimated to have grown by 18.2 per cent to Rs. 1,14,650 crore in 2003-04. 

The share of hardware and non-software services in the IT sector has declined consistently every year in the recent past. The share of software services in electronics and IT sector has gone up from 38.7 per cent in 1998-99 to 61.8 percent in 2003-04.