Industry Overview for 2017
Indian IT exports grew at 7-8 per cent in 2017-18 to US$ 126 billion, in addition to adding 130,000-150,000 new jobs during the same period. Digital payment in India grew from 32 per cent in 2013-14 to 62 percent in 2017-18 in terms of volume of transactions. Total spending on IT by banking and security firms in India grew 8.6 per cent year-on-year to US$ 7.8 billion in year 2017.
Projections for IT Industry
The IT business process management (BPM) sector in India is estimated to expand at a CAGR of 9.5 precent to USD 300 billion by 2020. It is also currently the fastest growing segment, growing over 30 per cent annually. Revenue from digital is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025. Indian IT and BPM industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.
E commerce market in India is set to grow at 30 per cent annually to hit US$ 200 billion gross merchandise value by 2026. Indian technology companies expect India's digital economy to have the potential to reach US$ 4 trillion by 2022, as against the Government of India's estimate of US$ 1 trillion.
Export revenue have grown at a CAGR of 50.76 per cent to an estimated US$ 25 billion in FY18.
India remained the world’s top sourcing destination in 2017 with a share of 55 per cent for the IT industry. Indian IT & ITeS companies have set up over 1,000 global delivery centres in over 200 cities around the world.
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM).