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 |
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A. Production - 2007-08 |
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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) |
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B. Export - 2007-08 |
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Growth* |
CAGR (5 years)* |
IT & Electronics |
Rs.175,700 crore |
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($43.5 billion) |
27.00% |
31.00% |
Hardware |
Rs. 12,700 crore |
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($3.1 billion) |
7.00% |
22.00% |
Software & Services |
Rs 163, 000 crore |
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($40.4 billion) |
28.00% |
32.00% |
*
In dollar terms (Source: DIT, Annual Report) |
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C. Hardware (March, 2006) |
4 lakhs direct
employment |
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8 lakhs indirect
employment |
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D. Software & Services (2007-08) |
16.2 lakhs in 2006-07 |
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3.9 lakhs added in
2007-08 |
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20.1 lakhs Total |
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(Source: NASSCOM, August,2008) |
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E. Share of IT-ITES in GDP |
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5.5% in 2007-08 |
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(Source:- NASSCOM) |
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F.
Share of Electronics & IT Export in India Exports |
17% in 2007-08 |
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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 |
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(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 |
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(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)
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(Rs. crore) |
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(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 |
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Electronics
Exports |
(Year wise)
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(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.