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IT share in GDP pegged at 5.2%

April 21, 2008 17:20 IST

The share of Information Technology industry in India's GDP was 5.2 per cent or $ 48.1 billion in 2006-07, the government said on Monday, quoting a Nasscom report.

In a written reply to the Rajya Sabha, Minister of State for Human Resource Development D Purandeswari said of the $ 48.1 billion, hardware and software products comprised $ 11.5 billion and IT services $ 36.6 billion.

The Nasscom report also pointed out that around 16.30 lakh (1.63 million) people were employed in the IT sector during 2006-07 and 375,000 more jobs were expected to be added in this sector in 2007-08.

She also said as per projections of the All India Council for Technical Education (AICTE), there would not be any shortage of engineers in the country in view of the present rate of increase in enrolment in engineering colleges.

"However, Nasscom has raised the issue of employability of engineering graduates in India," she informed the Upper House.

Purandeswari said a working group was constituted by the HRD ministry to examine the issues raised by Nassom.

The working group has recommended, among other things, 'finishing schools' for engineering graduates to enhance their employability and changes in the syllabi of various engineering colleges to make them compatible with the needs of the industry.

The minister said finishing schools were already being organised for the IT sector.