India is the fifth best country in the world for dynamic growing businesses, according to the Grant Thornton Global Dynamism Index. In addition, Deloitte predicts India will be the second largest manufacturing country in the next five years, followed by Brazil as the third ranked country. India’s growth potential story is therefore a strong one.
India’s Growth Potential Story
- India is one of the leading offshore destinations in delivering engineering research and development (ER&D) services with a market share of 22 per cent. The market in India is expected to grow to US$ 42 billion by 2020, as per a Zinnov study titled, 'Engineering R&D: Advantage India'
- The information technology (IT) and business process outsourcing (BPO) sector of India is expected to register a growth of 11 per cent and revenue of US$ 75 billion-US$ 77 billion during 2012-13, according to National Association of Software and Services Companies (Nasscom)
- The public cloud services market in India is projected to grow to US$ 326.2 million, registering 32.4 per cent growth in 2012, highlighted a report by Gartner.
- In addition, India has become a key contributor in global research and of growth in the Asia-Pacific (APAC) region, playing host to one-third of top 1,000 R&D spenders in the world, according to a Zinnov study titled 'Global R&D Benchmarking Study'.
The Rise of Technology Sector in India
- The technology sector in India has a major impact on the Indian economy. The industry has grown from US$4 billion in 1998 to more than US$80 billion in 2011, employing directly and indirectly more than 10 million people. Riding on the services outsourcing wave, domestic and international companies have leveraged India’s value proposition to enhance their competitiveness in the global market.
- Key government initiatives, such as setting up of tax free zones, Software Technology Parks of India (STPI) and Special Economic Zones (SEZ), have given strong impetus to the export of IT services.
- The technology sector in India received US$6.197 billion through FDI in 2011, an increase of 46% from the previous year. The investment has created 153 projects with an estimated 41,607 jobs in the industry.
- Five principle sectors in the IT industry, namely online businesses, IT services, IT-enabled services and software and hardware merchandise received most of the investments. Compelling cost advantage coupled with available skilled force has driven this spectacular growth.
- Although many low-cost delivery destinations, such as China, Philippines and Vietnam, are emerging, India’s leadership position cannot be challenged. Its benefit of long term cost competitiveness, supply of highly trained engineers and its expertise in processes and quality will continue to foster its growth.
Growth Enablers: Policy Thrust - Information Technology
- To increase revenues of IT and ITeS (Information Technology Enabled Services) Industry from US$ 100 billion currently to US$ 300 billion by 2020 & expand exports from US$ 69 billion currently to US$ 200 billion by 2020.
- Promote innovation and R&D in cutting edge technologies and develop applications and solutions in location based services, mobile value added services, cloud computing, social media and utility models
- To create a pool of 10 million additional skilled manpower in the Information Communication Technology (ICT) sector.
I believe that India’s growth in the IT and ITeS sector has triggered a chain of growth in all sectors of the Industry thereby triggering not only outsourcing of projects from clients across the globe, but it has also instigated sectors in India to adapt newer technology trends to become more competitive in the market place and you see now a host of Indian companies going global with their offerings in the market place. The technology revolution for the last 15 years has triggered a huge growth and a massive educated and technology focused workforce which is leading India to become one of the top economies of the world by 2020.