ASCENDAS india trust ANNUAL REPORT 2014/15
3 Overview of IT/ITES Industry in India
The IT/ITES
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industry in India is a growth engine for the economy, contributing substantially to the increase in the GDP, urban
employment and exports. The Federal and the State Governments have played a major role in positioning India as the IT/
ITES hub and a major outsourcing location in Asia. The Indian Government had introduced several notable policies such as
creation of Software Technology Parks of India (“STPI”) in the past, which boosted the IT/ITES development in the country.
And on the fiscal front, with the promulgation of Special Economic Zones (“SEZ”), companies were provided incentives
such as duty-free imports of software and hardware products and exemptions in the corporate income tax. This promoted
investment in the country and gave a further boost to employment.
Availability of quality talent at cost effective rates, rapidly developing infrastructure, an enabling innovation environment,
supportive regulatory policies and a positive overall business environment – are all central pillars to India’s value proposition.
The IT industry has been one of the most significant growth driver for the Indian economy, with revenue growing from
US$100 million
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in 1992 to US$146 billion in FY14/15. According to the National Association of Software and Services
Companies (“NASSCOM”), it expects revenues from the IT/ITES and Business Process Management (“BPM”) sector to reach
US$225 billion by 2020. India’s IT and BPM sector exports are estimated to grow by 11.4% to US$98 billion in FY14/15 and
domestic revenues are estimated to grow by 14.3% to US$48 billion for the same period. For FY15/16, NASSCOM forecasts
that the Indian IT and BPM sector would grow by 13-15% to US$165-168 billion.
The following table highlights the industry’s performance over the last decade.
Particulars
Unit
FY-
04/05
FY-
05/06
FY-
06/07
FY-
07/08
FY-
08/09
FY-
09/10
FY-
10/11
FY-
11/12
FY-
12/13
FY-
13/14
FY-
14/15 (E)
India IT-BPM
Revenue
US$ billion 28.1 37.4 47.9 72.9 69.4 73.9 88.2 100.8 108.4 130.1 146.5
Growth in IT-BPM
Revenue
% 30% 33% 28% 52% -5% 6% 19% 15% 7% 20% 12%
Exports
US$ billion 18.2 24.2 31.7 40.9 47.5 50.1 59.4 69.1 76.2 88.0 98.5
Growth in
Exports
% 36% 33% 31% 29% 16% 5% 19% 16% 10% 16% 11%
Exports % of
Total
% 65% 65% 66% 56% 68% 68% 67% 68% 70% 68% 67%
Domestic
Revenue
US$ billion 9.9 13.2 16.2 32 21.9 23.8 28.8 31.7 32.2 42.1 48.0
Increase in
Domestic
Revenue
% 21% 33% 23% 98% -32% 9% 21% 10% 1% 31% 14%
Employment
(‘000)
1,058 1,293 1,621 2,010 2,196 2,300 2,540 2,776 2,964 3,289 3,520
Increase
% 27% 22% 25% 24% 9% 5% 10% 9% 7% 11% 7%
Source: NASSCOM
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Information Technology/Information Technology Enabled Services sectors
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NASSCOM
A
I n d i a : E c o n om i c & C omm e r c i a l R e a l E s t a t e
O v e r v i e w
