IT-ITeS sector's contribution to the country's GDP has increased more than four times to 5.2 per cent in 2006-07 as compared to 1.2 per cent in FY'98, a study has said on Wednesday. It has been carried out jointly by Nasscom Foundation and global consultancy Deloitte.
The Foundation was seeded by National Association of Software and Service Companies, the premier trade body of the Indian IT-BPO firms. Titled the 'Indian IT Industry: Impacting the Economy and Society', the research found that the sector has contributed handsomely to the foreign exchange reserves by increasing exports from India.
"Export earnings in FY 08 (till now) stood at $ 40 billion, a growth of 36 per cent," the study said.
Direct employment in the sector too has grown at a compounded annual growth rate of 26 per cent in the last one decade, making it the largest employer in the organised private sector, it said.
The sector also yielded indirect employment with four additional jobs being created in the economy for every one job created in the sector. "This is socially relevant as nearly 75 per cent of the workforce employed in those jobs are SSC/HSC or less educated," the study said.
The IT-ITes industry spent $ 15.85 billion in the domestic economy in FY'06, generating an additional output of USD 15.5 billion. The industry has also had a significant impact on regional development through creation of job opportunities in smaller towns and cities.
Private equity and venture capital funding too received a fillip with the growth of the sector, the report added.
