Indian service sector has always been a robust industry which contributes more than 50% to the GDP of India. While it contains multiple fields like banking, finance, hospitality, tourism and much more, it is the Information & Technology (IT) industry that has the maximum growth.
Industry body NASSCOM released its report card on IT industry for the year 2019. IT Industry is the brightest spot in the Indian growth story. The sector is continuously contributing towards employment generation and wealth creation.
The important statistics were tweeted by Debjani Ghosh, president of NASSCOM.
IT Sector Records Robust Revenue Growth
The report states that in FY 2019-20, the revenue of IT Industry stood at $177 billion. It projected the revenue to grow by a robust 7.7% for the current fiscal and take it to $191 billion. This indicates the volume of business done by the IT industry through the year.
The report also showed the YoY growth of various sub-sectors within IT industry, with e-commerce being the clear winner in growth.
IT Exports Register an Increase
Indian IT industry is known for giving service support to many multinationals and nations. The exports form the core of IT industry. In 2019-20, the exports stood at $136 billion while the projected growth is 8.1% at $147 billion for 2020-21. IT exports contributed 8% to the GDP of India and form 46% share of total service exports from India
The rise in exports also shows that global demand for IT services is growing at the healthy rate and can boost global growth despite concerns of Coronavirus, trade tensions, US-Iran relations and impact of Brexit.
IT Sectors Adds to Employment
Currently, IT sector employs a workforce of 4.36 million. During the last year, a net addition of 2.05 lakh is recorded. This is one of the largest additions to the employment generation in India which will help in fulfilling the dream of providing jobs to every youth.
NASSCOM has underlined the success of all the steps taken to promote Digital India, especially in the field of e-commerce and digital payments. The increase in demand for IT based services is a result of widespread optical fibre network and spread of cheaper mobile data throughout India. IT sector will continue to lead India’s growth story as we try to benefit from the Fourth Industrial Revolution.