IT grows ten-fold, hits $47.8bn in '06-07

The Indian information technology (IT) industry, including hardware, has grown ten-fold over the past decade - from $4.8 billion in 1997-98 to $47.8 billion in fiscal 2006-07 - and its contribution to India's gross domestic product (GDP) is estimated to have risen from 1.2% to 5.4%.

The Indian domestic IT market is expected to exceed $15.9 billion in fiscal 2006-07, recording 21% growth, according to the key findings of Nasscom's Strategic Review 2007.

Software and services (IT-BPO) exports are expected to exceed $31 billion in fiscal 2006-07, a 32.6% growth over last year's figure of $23.6 billion. The detailed report will be formally released at the 15th annual summit "Nasscom 2007: India Leadership Forum", scheduled from Feburary 7-9.

Indian service providers, the report states, have grown their share of contracts of value exceeding $50 million from 1 per cent in 2002 to 7 per cent in 2006 while over $10 billion worth of investment has been announced by MNCs, to be invested over the next few years.

Nasscom findings also note the Indian IT-BPO sector (including domestic and exports segments) is growing at an estimated 28% in fiscal 2007. The software and services exports are expected to exceed $31 billion in FY 2006-07, reporting a 32.6% growth.

Kiran Karnik, President, Nasscom said, "We are confident the industry will achieve its ambitious target of $60 billion in exports in 2010. Though challenges remain and are being addressed jointly by the industry, government and other stakeholders through both short- and long-term solutions. Optimistic market signs indicate there is more headroom for growth."