India IT Market
India IT industry is the only industry in the country that has outperformed all others in the battle against the global competition. In fact, Indian IT industry went through a dream run to grow from a meager US$ 150 million in 1991-92 to an astounding US$ 5.7 billion in 1999-2000. Taking its advancement further ahead, the Indian IT industry has taken itself to a new height to be at par with the global leaders in the current days.
The term 'Information Technology' (IT), as defined by the Information Technology Association of America (ITAA) is the "study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." India IT market consists of all the companies that use computer and computer software to convert, store, protect, process, transmit and retrieve information or data.
Software exports in India have played a major role in the economic development of the country. The software and services revenue of the country also soared up from US$ 22 billons in 2004-05 to US$ 28.5 billions in 2005-06 with a growth rate of 32%.
Not only in the software exports, India IT market has also considerably grown in the domestic sector as well. It saw a growth rate of 24% in the domestic market.
Following chart showcases the performance of Indian IT market over the years. The figures are in US$ million:
Following chart describes the progress rate of Indian software market (Figures are in US$ billion):
The term 'Information Technology' (IT), as defined by the Information Technology Association of America (ITAA) is the "study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware." India IT market consists of all the companies that use computer and computer software to convert, store, protect, process, transmit and retrieve information or data.
Inside the Industry
India IT market emerges across four broad sectors:- IT Services
- Software Products
- IT Enabled Services (ITeS)
- E-business
- Software Development
- Management Information System
- Data Management
- Computer Networking
- Data Security
The Growth of Indian IT Market
Since 1991, the Indian IT market has seen a substantial growth rate as the software exports from the country have consistently been over 50% during this period. The total revenues of software exports reached at ` 46100 crores. The total exports also soared up from 4.9% in 1997 to 20.4% in 2002-03.Software exports in India have played a major role in the economic development of the country. The software and services revenue of the country also soared up from US$ 22 billons in 2004-05 to US$ 28.5 billions in 2005-06 with a growth rate of 32%.
Not only in the software exports, India IT market has also considerably grown in the domestic sector as well. It saw a growth rate of 24% in the domestic market.
Following chart showcases the performance of Indian IT market over the years. The figures are in US$ million:
| Year | 1995-96 | 1996-97 | 1997-98 | 1998-99 | 1999-2000 | 2000-01 |
| Domestic Software Market | 490 | 670 | 920 | 1250 | 1700 | 2450 |
| Software Exports | 734 | 1085 | 1750 | 2650 | 4000 | 6300 |
| Indian Software Industry | 1224 | 1755 | 2670 | 3900 | 5700 | 8750 |
Following chart describes the progress rate of Indian software market (Figures are in US$ billion):
| Year | 2003-04 | 2004-05 | 2005-06 |
| IT Software and Service Export | 9.2 | 12.0 | 15.2 |
| ITes / BOP Exports | 3.6 | 5.2 | 7.3 |
| Domestic Market | 3.9 | 4.8 | 6.0 |
| Total | 16.7 | 22.0 | 28.5 |
The NASSCOM - McKinsey Report
A research work was undertaken by The NASSCOM - McKinsey to learn about the future of Indian IT market. The key findings of the report are:- IT export of the country will account for about 35% of the total export.
- Software and Services will contribute 7.5% of the nation's overall GDP growth.
- This industry will draw around US$ 4-5 billion Foreign Direct Investment.
- Around 2.2 million jobs will be generated.
| >> More about India Market |
Market Information
