SME Times is powered by   
Search News
Just in:   • Biden administration forgives $4.7 billion loans to Ukraine  • Women entrepreneurs driving innovation, growth in gem & jewellery sector: Smriti Irani  • India’s export outlook brighter as manufactured goods gain share: RBI  • India’s consumer durable makers to log 11-12 pc growth in FY25  • SEBI’s proposal on SME IPOs: striking a delicate balance 
Last updated: 26 Sep, 2014  

IT 2008 THMB Information Technology (IT) 2008 - a saga of growth with quality

IT 2008
   Top Stories
» India’s export outlook brighter as manufactured goods gain share: RBI
» Private consumption driving growth in Q3 with rural India taking lead: RBI
» Indian MSMEs create about 10 crore jobs in 15 months
» Indian prefer Q-commerce for daily essentials, physical stores for high-value buying
» Embedded finance to unlock $25 bn revenue opportunity for India’s platforms by 2030
Yearender - 2008

India's strides in Information Technology continued unabated in 2008 with a host of impressive achievements. Some of these are outlined below.

IT-ITeS Industry - Growth Performance:
The Indian Information Technology- Information Technology-enabled  Services (IT-ITeS) industry  has shown remarkable resilience in the year 2007-08. Continuing on its established track record, the overall Indian IT-ITeS revenue aggregate is estimated to have grown by over 33 percent to reach US$ 64 billion in fiscal year 2007-08 as compared to US$ 48.1 billion in FY 2006-07.  

The total software and services exports is estimated at US$ 40.4 billion in 2007-08, as compared to US$ 31.4 billion in 2006-07, an increase of 28.3 percent.  ITES-BPO exports are estimated to grow from US $ 8.4 billion in 2006-07 to US $ 10.9 billion in 2007-08, a year-on-year growth of over 29.8 percent.  

Though the IT-BPO sector is export driven, the domestic market is also significant.  The revenue from the domestic market (IT Services and ITES-BPO) is estimated to be US$ 11.7 billion in 2007-08 as compared to US$ 8.2 billion in 2006-07 an a growth of about 42.7 percent.  BPO demand in the domestic market has witnessed noticeable growth over the past few years.  

The total IT Software and Services employment is estimated to touch 2.0 million mark in 2007-08 as against 1.63 million in 2006-07, a growth of 22.7 percent YoY. This represents a net addition of 375,000 professionals to the industry employee base in 2007-08. The indirect employment attributed by the sector is estimated to about 8.0 million in 2007-08. This translates to the creation of about 10 million job opportunities attributed to the growth of this sector.

                                  INDIAN IT AND ELECTRONIC INDUSTRY AT A GLANCE
       
A. Production - 2007-08      
    Growth CAGR(5 years)
IT & Electronics Rs 291,100 crore 19.00% 25.00%
Hardware Rs 80,800 crore 22.00% 17.00%
Software & Services Rs. 210, 300 crore 18.00% 29.00%
(Source: DIT, Annual Report)      
       
B. Export - 2007-08      
    Growth* CAGR (5 years)*
IT & Electronics Rs.175,700 crore    
  ($43.5 billion) 27.00% 31.00%
Hardware Rs. 12,700 crore    
  ($3.1 billion) 7.00% 22.00%
Software & Services Rs 163, 000 crore    
  ($40.4 billion) 28.00% 32.00%
* In dollar terms (Source: DIT, Annual Report)      

     
C. Hardware (March, 2006) 4 lakhs direct employment  
  8 lakhs indirect employment  
       
D. Software &  Services (2007-08) 16.2 lakhs in 2006-07    
  3.9 lakhs added in 2007-08  
  20.1 lakhs Total    
(Source: NASSCOM, August,2008)      
       
E. Share of IT-ITES in GDP   5.5% in 2007-08
(Source:- NASSCOM)      
     
F. Share of Electronics & IT Export  in India Exports 17% in 2007-08

As a portion of national GDP, the IT-BPO sector revenues are estimated to have grown from 5.2 percent in 2006-07 to an estimated 5.5 percent in 2007-08.

Electronics Production











(Rs. crore)
   Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
1. Consumer Electronics 13800 15200 16800 18000 20000 22500
2. Industrial Electronics 5550 6100 8300 8800 10400 11950
3. Computers 4250 6800 8800 10800 12800 16400
4. Communication. & Broadcast Equipment 4800 5350 4800 7000 9500 14350
5. Strategic Electronics 2500 2750 3000 3200 4500 6100
6. Components 6600 7600 8800 8800 8800 9500
    Sub-Total 37500 43800 50500 56600 66000 80800
7. Software for Exports 46100 58240 80180 104100 141000 163000
8. Domestic Software 13400 16250 21740 29600 37000 47300
    Total 97000 118290 152420 190300 244000 291100

The industry has set a target of US $ 60 billion in export revenues and US $ 73 – 75 billion in overall software and services revenues to be achieved by 2010. 

Electronics Exports 





            (Rs. crore)
   Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
1. Consumer Electronics 750 825 1150 2000 1500 -
2. Industrial Electronics 1400 1515 1500 2300 3000 -
3. Computers 550 1440 1200 1025 1500 -
4. Communication & Broadcast Equipment 500 165 350 500 650 -
5. Strategic Electronics - - - - - -
6. Components 2400 3755 3800 3800 5850 -
    Sub-Total 5600 7700 8000 9625 12500 12700
7. Computer Software 46100 58240 80180 104100 141000 163000
    Total 51700 65940 88180 113725 153500 175700

Electronics Production (Year wise)





        (Rs. crore)   (Rs. crore)
Year Hardware Software Total Growth(%) 2006-07 2007-08
2002-03 37500 59500 97000 21.1 1500 -
2003-04 43800 74490 118290 21.9 3000 -
2004-05 50500 101920 152420 28.9 1500 -
2005-06 56600 133700 190300 24.9 650 -
2006-07 66000 178000 244000 28.3 - -
2007-08 80800 210300 291000 19.3 5850

Electronics Exports  (Year wise)



        (Rs. crore)
Year Hardware Software Total Growth(%)
2002-03 5600 46100 51700 22.2
2003-04 7700 58240 65940 27.5
2004-05 8000 80180 88180 33.7
2005-06 9625 104100 113725 29
2006-07 12500 141000 153500 35
2007-08 12700 163000 175700 14.5

21000 Common Service Centres Rolled Out:
The CSC Scheme, as approved by the Government of India, envisions CSCs as the front-end delivery points for Government, private and social sector services to rural citizens of India, in an integrated manner. The objective is to develop a platform that can enable Government, private and social sector organizations to align their social and commercial goals for the benefit of the rural population in the remotest corners of the country through a combination of IT-based as well as non-IT-based services. The MMP is a part of the core & support infrastructure of NeGP.

CSC RFPs have been issued for 25 States /UTs. Of these, 23 States / UTs have completed the Service Centre Agency (SCA) selection process covering 1,02,827 CSCs. Of these 23 States / UTs, 21 States have signed the MSA with the selected SCA up till October, 2008 covering 1,01,682 CSCs. As of October, 2008, a total of 20,558 CSCs have been rolled out in 14 States. In the remaining States UTs, action is also progressing well. The implementation of this massive project, which is unprecedented globally, is likely to be completed by end of 2nd quarter of 2009.

Achievements under State Wide Area Network (SWAN):

As on October 31, 2008, SWAN has been implemented in 5 States / UTs of Haryana, Himachal Pradesh, Tamil Nadu, Chandigarh and Delhi. Implementation is at an advanced stage in another 9 States / UTs and is likely to get completed by December, 2008. Implementation is in progress in another 8 States and is likely to get completed between January, 2009 and May 2009. Bid evaluation is in progress in Rajasthan while Bid process has been initiated in another 4 States. RFP/ Proposal is under review in another 5 States / UTs while Andaman & Nicobar and Goa have opted out of the scheme.  

Capacity Building:

The CB Scheme, approved by the CCEA on 1st January, 2008, envisions establishment of institutional framework for State Level Strategic decision-making including setting-up of State e-Governance Mission Team (SeMTs). CB scheme also involves imparting of specialized training, orientation programme for SeMTs and decision makers (state legislature and senior bureaucrats), knowledge sharing and bringing in international best practices and Strengthening of Training Institutions in States.

A Capacity Building Management Cell (CBMC) has bee set-up in DIT for overall coordination and implementation of CB Scheme. The RFP process for 'Empanelment of Agencies for providing Temporary Staffing Services for SeMTs’ and for ‘Selection of Agency for providing Recruitment Services’ is at an advance stage of implementation.

Electronics Hardware Manufacturing:

The Scheme has received very positive response from prospective investors. Sixteen proposals involving an investment of the order of Rs.1,55,000 crores, over a period of 10 years covering setting up of Semiconductor fab, LCD panel manufacturing and Solar photovoltaics including polysilicon, have been received under the Scheme.

STPI:

Software Technology Parks of India was established and registered as an Autonomous Society under the Department of Information Technology in year 1991 with an objective to implement STP/EHTP Scheme, set up and manage infrastructure facilities and provide other services like technology assessment and professional training. During the year 2007-08 three new Centres with High Speed Data Communication facility became operational at Haldia, Shillong and Patna and as of now a total of 51 STPI Centres/Subcentres are operational across the country.

Free/ Open Source Software:

A National Resource Centre for Free and Open Source Software (NRCFOSS) has been set up in Chennai  jointly with C-DAC and Anna University KBC Research Centre with an objective to contribute to the growth of Free/Open Source software in India  to Research and Development, Human Resource Development, Networking and Entrepreneurship development as well as to serve as the reference point for all FOSS related activities in the country. NRCFOSS has developed the portal www.nrcfoss.org.in using open source content management tool and reflects FOSS events in the country.

The Centre has come out with Indian GNU/Linux localised distribution termed as Bharat Operating System Solutions (BOSS). BOSS Linux Desktop Edition version 3.0 with wide Indian languages support and packages that are relevant for use in government domain has been released in DIT during September 2008.
 
Creating Digital Opportunity:

To enable wide proliferation of ICT in Indian languages, DIT has taken a major initiative to make available Software tools & fonts in various Indian languages freely to the general public. Centre for Development of advanced computing (C-DAC) has released the CD’s for eleven constitutionally recognized Indian languages viz. Tamil, Hindi, Telugu, Marathi, Urdu, Punjabi, Oriya, Kannada, Assamese, Malayalam, and Gujarati, for free mass usage. Bengali is in the pipeline. The process of consolidation for other languages as well as release of second version of CD for some of  the languages  is currently underway.

Approximately 7 lakh free software tools and Fonts CDs have been distributed to the masses. Apart from online registration and shipment of CDs, approximately 26 lakh downloads have happened from the website. Other media of distribution includes magazines, pre-bundled software with OEM, etc.

Information Technology Investment Regions(ITIR):

There is a need to develop infrastructure facilities in tier 2 and tier 3 cities, as there is little scope of building additional commercial space in the five tier 1 cities, New Delhi, Bangalore, Hyderabad, Mumbai and Chennai. An important initiative in this direction has been taken in May 2008 through IT investment Regions Policy Resolution, which could include new integrated townships.  The challenge is to add commercial office space at the estimated rate of 25 million square feet per annum and obtain commensurate expansion of business infrastructure, residential space and other amenities and facilities  every year to keep pace with the demands.

Human Resource Development:

The Department has initiated a Special Manpower Development Programme in the area of VLSI Design and related software for generating the key-catalyst ingredient for this sector. This is being implemented through seven Resource Centres and 25 Participating Institutes.

DIT is also implementing a scheme relating to Manpower Development for Software Export Industry with a view to increasing the employability of the students. The Scheme covers Training of the Trainer’s Program, Enhancement of quality of IT education in colleges, Virtualization of Technical Education, conducting specialized short term courses in IT/ITES sector, Setting up of National On-line Test System for Graduate Engineers in Information Technology, etc. This is being implemented through nine institutions/organizations.

DIT has approved a proposal of Govt. of Kerala to set up an ICT Academy. The ICT Academy, Kerala will focus to improve the quality of student passing out of institutions and colleges in Kerala to make them industry ready and immediately employable in IT and ITES industry.

National Knowledge Network:

National Knowledge Commission has recommended setting up of  high-speed digital broadband network with adequate capabilities and access speed to encourage sharing of resources and collaborative research. In accordance with this recommendations, Department of Information Technology initiated  the National Knowledge Network plan scheme with the primary  objective  to provide Gigabit broadband connectivity to all institutions of higher learning and research  in the country. 

Review of Information Technology Act:

The Information Technology Act 2000, a legal framework for transactions carried out electronically, was enacted to facilitate e-Commerce, e-Governance and to take care of computer related offences. Over the years, with several new forms of computer crime, misuse and fraud taking place, a need was felt to strengthen legislation pertaining to information security. The same is being done through appropriate legislative measures.

 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Will the new MSME credit assessment model simplify financing?
 Yes
 No
 Can't say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter