Technology February 14, 2008, 7:57AM EST text size: TT
Indian Tech Industry Looking at 33% Growth
Tech will contribute 5.5% of India's gross domestic product in 2008,
up from 1.2% in 1998
by Tim Ferguson
The Indian tech industry is expected to generate around US$64 billion
in revenues in 2008--a 33 percent growth--while also having a
significant impact on the country's economy.
Services and software ex****ts are expected to contribute around US$41
billion with the domestic market generating more than US$23 billion,
according to Indian tech industry body, Nasscom.
The Indian tech industry is aiming to hit total revenues for software
and services of US$75 billion by 2010.
But Nasscom's 2008 Strategic Review shows the growth of the tech
industry has had other benefits other than lining the pockets of
India's mega-cor****ations.
As a pro****tion of national GDP the Indian tech sector will hit 5.5
percent in 2008, up from just 1.2 percent in 1998. It is also expected
to contribute a net value to the economy of up to 3.9 percent.
The Nasscom study found the tech industry has also fueled a 36 percent
increase in direct ex****ts and a boosted direct employment by a
compound annual growth rate of 26 percent over the past decade.
And by the end of the 2008 financial year, almost two million Indian
workers will be employed in the tech industry.
The tech industry has also contributed to an increase in consumer
spending--for every rupee earned by the Indian tech-BPO industry, an
additional rupee is spent in the economy.
Its influence in other parts of Indian life includes contributions to
community initiatives, human resource development, education, health
and the empowerment in business.
The tech industry has also fueled the growth of private equity and
venture capitalism funding and spurred entrepreneur****p.
Som Mittal, Nasscom's president, said the industry is on track to
exceed its 2010 targets but still needs to resolve issues around
talent, manpower and infrastructure.
Nasscom chairman, Lakshmi Narayanan said the increase in revenues
"reinforces the confidence of global cor****ations in India".
Narayanan, also vice-chairman of Cognizant, said the Indian IT-BPO
industry is poised for broad-based growth, strengthening its position
as "the primary sourcing location" for software, IT infrastructure and
business process-related services.
Tim Ferguson re****ted for Silicon.com from London.
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