India has emerged as the world’s largest BPM destination with the IT-BPM sector having a staggering share of 45% in the total Indian services export. The sector is the largest employer within the private sector, employing 3.9 million people. It is, therefore, not surprising that the government has eased foreign investment policies in order to encourage more FDI in the IT sector in India.
Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market. India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country.
Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route.
100% FDI in the IT sector in India is permitted in B2B E-commerce.
Largest market share in global services sourcing industry
3rd largest tech start-up hub of the world
2nd highest number of internet subscribers in the world
India’s IT & BPM industry grew to USD $181 bn in 2018-19. Exports from the industry increased to USD $137 bn in FY19 while domestic revenues (including hardware) advanced to USD $44 bn
The domestic market is catered by hardware segment and IT services, which contributed approximately $15 bn and $26 bn in 2017-18, respectively
IT services accounting for 56.4% of total IT exports
Software products and engineering services occupying 21.3% share of the total IT exports
The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats in the country with high-speed broadband. Indian IT industry has more than 16,000 firms, of which 1,000 plus are large firms with over 50 delivery locations in India
By 2025, the Indian Information Technology and Business Process Management (IT and BPM) sector’s revenue is estimated to reach USD $350 bn
Will changes in FDI norms lead to more employment??
Policy Watch - Review of FDI Policy - FDI India
India Received Highest-Ever FDI Of Over $64 Billion In 2018-19
Cabinet decisions: 100?I in contract manufacturing under automatic route
The Big Picture - Wooing FDI - FDI India