Contribution of IT Industry in Growth of Indian Economy

According to the world’s leading research and advisory company, Gartner, the Tata Consultancy Services (TCS) remains the leader of Indian IT service providers followed by Infosys and HCL Technologies. IT sector has significantly helped in the Indian economy’s progress by increasing its contribution in GDP from 1.2% to 8% and employing nearly 4.1 million people in India. The journey of the IT industry in India started in the year 1968 when Tata Sons Limited established an IT firm TCS as one of its divisions. IT got its recognition as an Industry and started receiving its subsidies only after a reform that took place in 1984. Since then, this sector has rapidly grown and happens to have a huge brand value and reputation among all other Industries.

IT industry, especially the top IT companies in India have played a prominent role in shaping the image of the country from a slow developing nation to a fast-moving economy with highly qualified and talented graduates. India has a mammoth number of graduates working as IT professionals having the required skills and capability meeting the needs of India on a global platform. As India has a huge English-speaking population most, countries like the UK and the US rely on many Indian IT firms for the ease of communication. Another good reason for the rapid growth of this industry is, the Indian skilled employees being significantly inexpensive compared to other developed countries making India one of the largest outsourcing destinations.

Information technology stands out as one of the most revolutionary sectors that brought about a tremendous change by giving plenteous opportunities to Indian graduates. As these companies recruited the workforce in bulk, the employment issue resolved to some extent. The growing employed population improved the average purchasing capacity, goods consumption, and demand. The big and reputed IT firms expanded massively by putting up their branches all over the major cities in the nation.

India has become one of the largest yet affordable destinations in the IT world and this emergence has led to the formation of IT hubs across India. There are many top IT companies in Mumbai, the financial capital of India which has the headquarters of the largest IT Company, TCS. However, Bangalore remains to be the largest IT hub of India with the highest number of software companies operating with outstanding progress. It is well known as Silicon Valley of India and has the headquarters of many top IT firms like Wipro, Mindtree, and Infosys. The other important tech cities are Hyderabad, Noida, Pune, Kolkata, and Chennai.

The IT industry has shown great potential in shaping the nation’s economy. The central and state government has recognized this potential and taken many initiatives such as Make in India, Phased Manufacturing program, and Software technology parks Of India for promoting this industry. These initiatives with proper execution can certainly help in job creation.

The exponential growth of the IT industry has undisputedly impacted the nation’s economy in India and all over the world. Yet, future innovations in this field are going to be even more surprising and beyond our expectations.