Economic Survey 2013-14: IT/ITeS sector to reach USD 300 billion by 2020

09 Jul

The IT and IT enabled Services (IT and ITeS) is one of the major growth catalysts for India. India has maintained its overall leadership in global sourcing, accounting for over 55 percent of the global sourcing market, up three percent from last year.

Exports are being mainly driven by demand revival from the US and Europe due to increase in discretionary spending. Despite recent increase in wages and other costs, India still remains competitive in the global market compared to the developed markets by 7-8 times and also enjoys cost advantage of over 30 percent over its nearest competitor. However the country faces multiple challenges ahead in terms of wages pressure, consumer confidence, forex volatility and other competitive factors.

This sector remains one of the main contributors of both direct and indirect employment with over 1.66 lakh new jobs expected to be added during the year with the total direct and indirect employment for the sector reaching 3.1 million and 10 million respectively. 
The overall size of this sector in terms of revenues is expected to reach USD 300 billion by 2020 with over USD 200 billion coming from exports and the remaining USD 100 billion being contributed by domestic demand.