Snapshot

Digital Innovation Hub

India is emerging as the hub for “Digital Skills”. The country spends $ 1.6 bn annually on training workforce in the sector. The industry is the largest employer within the private sector, employing 3.9 mn people. India is transforming into a digital economy with over 465 mn internet subscribers; only second to China.

Indian IT industry has more than 16,000 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.

The National Optical Fibre Network (NOFN) aims to connect all 250,000 Gram Panchayats (village council) in the country with high-speed broadband.

  • India’s domestic tech-market is the fastest growing in Asia-Pacific, witnessing growth of over 11% in 2016-17.
  • The revenue of Information Technology and Business Process Management (IT and BPM) industry in India is estimated to reach $ 350 bn by 2025.

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 is permitted in B2B E-commerce.

for further details, please refer FDI Policy

  • 8%

    Share in India's GDP

     

  • 56%

    Share in global outsourcing market

  • 19%

    E-commerce growth

  • 45%

    Share in Indian services export

Largest market share in global services sourcing industry

Largest market share in global services sourcing industry

Third largest tech startup hub of the world

Third largest tech startup hub of the world

Second highest number of internet subscribers in the world

Second highest number of internet subscribers in the world

Industry Scenario

IT BPM's exports have doubled in the last 6 years.

India is the leading off-shoring destination for IT companies in the world. The IT and BPM industry is the largest contributor to the total exports of the country. IT and BPM industry’s revenues stood at $ 154 bn in 2016-17 compared to $ 143 bn in 2015-16. The total revenue of $ 154 bn in 2016-17 comprised of $ 116 bn in exports and close to $ 38 bn in domestic share.

The domestic market is catered by hardware segment and IT services, which contributed $ 14 bn and $ 24 bn in 2016-17, respectively.

The exports of $ 116 bn in 2016-17 is further segmented as:

  •  Exports of $ 117 bn is further segmented as:
    •  IT services accounting for 56.4% of total IT exports
    •  BPM accounting for 22.2% share
    •  Software products and engineering services occupying 21.3% share

Growth Drivers

  • Skill development and R&D

    $ 1.6 bn is spent annually on training workforce and growing R&D

  • The National Optical Fibre Network (NOFN)

    Laid down in phases to connect all 0.25 mn gram panchayats

  • Digital India campaign

    A $ 20 bn Investment covering mobile connectivity across India 

  • Start-up revolution 

    IoT, machine learning, artificial intelligence and healthcare 

  • Open

    National Cyber Security Policy 2013

    To protect information and information infrastructure in cyb…

  • Open

    National e-Governance Plan (NeGP)

    E-Governance in India has steadily evolved from computerizat…

  • Open

    National Policy on Information Technolog…

    To strengthen and enhance India’s position as the Global IT…

  • Open

    Policy framework for satellite communica…

    To develop a healthy and thriving communications satellite a…

  • Open

    Software Technology Parks (STP) Scheme

    The STP scheme is for providing facilities to IT industry fo…

  • Open

    Special Economic Zones (SEZs) Policy

    An Act to provide for the establishment, development and man…

Investible Projects

Investment Opportunities in IT & BPM

  • Projects

    357

  • Opportunity

    $2.4 bn

  • Promoters

    80

  • District

    74

  • Private Projects

    11

  • Govt. Projects

    346

open

$468.2 mn

Coastal Economic Unit Project [Amravati]

State (s) Andhra Pradesh
open

$154.3 mn

IT Park at Guwahati

State (s) Assam
open

$101.4 mn

Intelligent Street Pole for 6 Smart Cities of MP

State (s) Madhya Pradesh
open

$99.2 mn

Rural BPO

State (s) Assam

Major Investors

Data on Map

FAQ

Frequently
Asked Questions

  • What is NeGP?

    The Government approved the National e-Governance Plan (NeGP), comprising of 27 Mission Mode Projects and 8 components, on 18 May 2006. In the year 2011, 4 projects - Health, Education, PDS and Posts were introduced to make the list of 27 MMPs to 31Mission Mode Projects (MMPs). The Government has accorded approval to the vision, approach, strategy, key components, implementation methodology, and management structure for NeGP. However, the approval of NeGP does not constitute financial approval(s) for all the Mission Mode Projects (MMPs) and components under it. The existing or ongoing projects in the MMP category, being implemented by various Central Ministries, States, and State Departments would be suitably augmented and enhanced to align with the objectives of NeGP.
    For further details please access following link.  

  • What is E-district?

    The e-District Mission Mode Project (MMP) is envisaged to strengthen the district administration of the state by providing ICT support to the participating departments and district administration in terms of providing centralized software application for selected category of citizen services and training for staff of the departments with a view to improve delivery of the citizen services being rendered by these departments. Services developed under e-District project would be delivered through various delivery channels like:
    i) Direct access by Citizens through e-District portal as a registered user.
    ii) Existing Atal Jana Snehi Kendra's / B1 / K1 service centres.
    iii) Common Service Centres (To be established uptoGrama Panchayat Level).

    For further details please access following link.  

  • What is the objective of Cyber Surakshit Bharat Programme?

    The objective of the programme is to educate & enable the Chief Information Security Officers(CISO) & broader IT community to address the challenges of cybersecurity.
    i)Create awareness on the emerging landscape of cyber threats.
    ii)Provide in-depth understanding on key activities,new initiatives,challenges and related solutions.
    iii)Applicable frame works,guidelines & policies related to the subject.
    iv)Share best practices to learn from success & failures.
    v)Provide key inputs to take informed decision on Cyber Security related issues in the irrespective functional area.
    For further details please access following link.

  • What is VPA?

    A Virtual Payment Address (VPA) is an address which uniquely identifies a person's bank a/c. For instance, the Virtual Payment Address for BHIM customers is in the format xyz[at]upi. User can just share his VPA with anyone to receive payments (no need for bank account number/ IFSC code, etc.). User can also send money to anyone by using their Payment Address.  

  • Which IT Enabled Services are considered to be part of BPO operations?

    As per Central Board of Direct Taxes (CBDT) notification No. 890E dated 26 September 2000, the list of eligible IT enabled services under BPO operations considered in IBPS are as under:
    i) Back office operations.
    ii) Call centres.
    iii) Content Development or Animation.
    iv) Data Processing.
    vi) Geographic information System Services.
    vii) Human Resource Services.
    viii) Insurance Claim processing.
    ix) Legal Databases.
    x) Medical Transcription.
    xi) Payroll.
    xii) Remote Maintenance.
    xiii) Revenue Accounting.
    xiv) Support Centres.
    xv) Website services.

    As per NASSCOM, BPO includes following processes that may be IT-enabled, do not necessitate on-shore presence and are hence, offshore-able:
    1) Customer Interaction & Support (CIS)- CIS includes all forms of IT-enabled customer contact, inbound or outbound, voice or non-voice based support used to provide customer services, sales and marketing, technical support and help desk services.
    2) Finance & Accounting (F&A)- F&A includes activities such as general accounting, transaction management (account receivables and payables management), corporate finance (e.g. treasury and risk management, and tax management); compliance management and statutory reporting, etc.
    3) Horizontal-specific BPM services- Services that are reasonably similar across industries. Horizontal BPM services include Customer Interaction and Support (CIS), Finance and Accounting (F&A) and other related processing services, Knowledge Services, Human Resource Management (HRM), Procurement BPM, etc.
    4) Human Resources Processing- HR processing services includes services that support the core HR activities plus talent management activities and associated business processes such as benefits, payroll and talent management.

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