He also said that software industry has overtaken PSUs as biggest job creator in the country with about 32 lakh-strong workforce and further addition of two lakh new jobs a year.
"Today TCS, Cognizant, Infosys and Wipro add more high quality and more highly disposable income based jobs in India than any other company has done in the last hundred years," said Murthy, who had founded Infosys with five others in 1981.
He recently stepped down as Non-executive Chairman of Infosys, known as the bellwether of Indian IT industry.
"Such jobs have stimulated the Indian economy in a significant manner; our youngsters buy vehicle, they buy home, they go on vacation, they shop in super markets and they go to restaurant.
"It is estimated that this industry creates three jobs in secondary and tertiary sectors of our economy for every direct job that has been created by this industry," he added.
"...Wherever you go in the developed world there is a new respect for India thanks to the Indian software industry. India has gained reputation as the software development centre of the world much like China's reputation as the factory of the world.
"Many influential authors all over the world have told me that our industry is an important reason for India being bracketed with the enormously successful China," Murthy said.
He also said the software industry is expected to grow between 12 and 14 per cent during the next five years.
Emergence of Indian software industry heralded a new confidence, a new mindset and a new paradigm in Indian business, according to Murthy.
"For the first time in the history of this country in three hundred years the country felt that it had arrived on the international business scene," he said.
Speaking about the industry's contribution to the country's exports and foreign exchange, Murthy said, "Thanks to this industry the country is in a strong balance of payment position in spite of oil prices rocketing."