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Impact of It on the Gdp of India

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Submitted By harshul
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India’s GDP and Information Technology

Group 5 – Div A
Tejaswini Vaidya
Mohit Mittal
Harshul Trivedi
Akshay Mohta
Tomy Augustine

Contents

India’s GDP 3

IT and India 4

IT and its Contribution to GDP 4

Investments in the IT sector in India 5

Education & its impact on GDP 8

Conclusion 9

India’s GDP
India’s GDP has grown steadily since 1991, after the Prime Minister Narasimha Rao initiated the economic liberalization of 1991. The reform reduced tariffs and interest rates, terminated public monopolies and allowed autocratic approval of FDI ( Foreign Direct Investments) in many sectors. Fig 1: India – Gross Domestic Product
The GDP of India is essentially divided into three broad sectors.
1. Industry and Services: Accounts for 26.3% of the total GDP
2. Agriculture: 18.1% of the total GDP
3. Services: 56.6% of the GDP
4. Total Labor force: 487.6 million
5. Labor force in services: 34% ~ 165.5 million
IT and India
India gained recognition due to its IT and ITES sector. The ITES can be broadly classified into IT Services and BPO (Business processing outsourcing). The first software export zone setup in India was in Mumbai, the SEEPZ Park, in 1973. Significant growth has taken place since then in the IT Services sector and consequently the net contribution to the GDP has been growing ever since. India’s reputation as both as a source and a destination for skilled workforce helped improve its relations with a number of world economies which in turn facilitated technology driven growth.
IT and its Contribution to GDP

Fig 2: Contribution of IT sector to India’s GDP (Source: Nasscom)
According to research and analytics firm Evalueserve, the booming IT industry is expected to account for 8.05% of the country's GDP by 2015-16, compared to 6.4 per cent in 2010-11.
Employee strength would surge to 3,750,000 during...

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