India IT sector up 10 spots in global competitiveness, ranks 34

Helped by increased focus on human capital and R&D, Indian IT sector has improved its ranking in the global competitiveness to 34th spot in two years, Business Software Alliance (BSA) 2011 Global IT Industry Competitiveness Index.

As per the index last published in 2009, India stood at 44th position among the 66 countries benchmarked.

"This year, given the increased focus on human capital and R&D, India has raced 10 spots to 34th position, ahead of China and other BRIC countries," BSA India Committee Chair Keshav Dhakad told reporters here.

China stood at 38th position, while Brazil and Russia took the 39th and 46th spots, respectively, he added.

"The study demonstrates clearly that India's IT competitiveness will continue to improve through focused steps which foster creativity and innovation within the IT industry," Dhakad said.

The United States continued to top the overall ranking for 2011 despite the slow down, followed by Finland, Singapore, Sweden and the United Kingdom.

Singapore stood at 9th position, Sweden at 3 and the United Kingdom at 6 in the 2009 index.

In Asia, India ranks 9th, behind Malaysia (ranks 31st) and ahead of China and Thailand (ranks 50th).

According to BSA, a global non-profit IT alliance, the index helps the governments and policy makers to identify strengths and weaknesses of the domestic IT industry.

"India's competitive momentum is hugely encouraging, since unlocking the next phase of industry growth will require a continued focus on creating a favourable business and legal environment, and improved IT infrastructure," Dhakad said.

However, to continue this trajectory, India will need a safe and secure digital economy that inspires the trust and confidence of government, business and citizens -- especially as markets across Asia become more competitive, he added.

The rankings are based on a series of indicators covering overall business environment, IT infrastructure, human capital, research and development (R&D), legal environment and public support for industry development.

The industry body has partnered with business arm of the The Economist, Economist Intelligence Unit (EIU) for the report.