3. Information and Communication Technology (ICT) is the
combination of Information technology (IT) and
telecommunication. Information technology, which focuses on
computer and related devices, and digital telecommunications,
including cell phones, the internet and other digital networks.
The information and communication technology (ICT) sector
has played an important role in India’s economic growth
4. Information Technology (IT)
Industry
Information
Technology
IT services BPO and BPM
Hardware
Manufacturing
Services
Software
products
Information Technology (IT) industry in India can be broadly classified into two sub-
industries as shown in above figure
•Service Industry
Which includes IT services, software products and BPO (Business Process Outsourcing)
and BPM (Business Process Management)
•Hardware Manufacturing
5. Current Status
The IT and IT Enabled Services (ITES)
industries have been one of the key driving
forces fuelling India’s economic growth,
contributing about 8% to India’s GDP in 2020-
21 and employs nearly 4.2 million people in
India. India is the leading sourcing destination
across the world, estimating for approximately
55% market share of the US$ 200-250 billion
global services sourcing business in FY 2022-
23.
6. Growth of IT Industry over last five year is shown
in below figure (in billions US$)
32 34 35
41
28
87
98.5
108
126
97
0
20
40
60
80
100
120
140
FY 16 FY 17 FY 18 FY 19 FY 20(till
september)
Domestic
Export
7. sub-industry wise breakup of IT industry in FY
19:
revenue from IT Services reached US$ 85.50 billion with share of 51.2% in the total
revenues in FY19
Followed by Software products services and BPM and BPO services respectively 20.6
and 19.7 with total revenue of US$ 66.8 billion.
Revenue form hardware manufacturing reached at US$ 14.7 billion.
51.2
19.7
8.5
20.6
It services
BPM and BPO
Hardware Manufacturing
Software Products
8. Market Players
Over the last few decades, top IT companies in India have become the
global leaders in information technology (IT) and contributing to the
growth of technology not only in India but globally.
Here is the list of the top 5 IT companies in India 2018 based on
revenues:
• TATA Consultancy Services (TCS): TCS has become the first Indian IT
company to have a market capitalization of 100 billion dollars and has over
400,000 employees. TCS generates roughly 70% of the revenue for Tata
Sons.
• Infosys: Infosys is a household name of Information Technology space with
workforce of over 200,000 people in different countries. In 2019, Infosys
was ranked as the 3rd Best Regarded Company in the World by Forbs.
9. • Tech Mahindra: Tech Mahindra is a part of Mahindra group, which is one
of the most reputed organizations in India with over 110,000 people
employed across 90 countries.
• Wipro: Wipro has a number of key focus areas like machine learning, Data
Sciences and analytics and is currently investing heavily in block chain
technologies and has over 160,000+ people employed across 6 continents.
• HCL Technologies: HCL technologies has offices in 44 countries with
worldwide network of R&D, “innovation labs” and “delivery centers”, and
over 140000+ employees.
10. Growth Drivers
•Low cost of operation and tax advantages
•Supportive government policies
•Availability of technically skilled manpower
•Strong export demand
11.
12. Telecommunication Industry
India is the world’s second-largest telecommunications
market with a subscriber base of 1.17 billion and has
registered strong growth in the last decade. The Indian
mobile economy is growing rapidly and contribute 6.5%
to India’s Gross Domestic Product (GDP).
Telecommunication industry employs more than 4 million
people.
14. As per the data released by Telecom Regulatory Authority of
India (TRAI), the total telecom wireless subscribers (GSM,
CDMA & LTE) were decreased from 1205.40 million in FY19
to 1171.80 million in FY20 (till October)
Indian telecom industry is currently the world’s second largest
telecommunications market with a subscriber base of over 1
billion. According to TRAI, total telephone subscribers are
stood at 1171.80 million (including 1151.81 million wireless
subscribers and 19.99 million wire-line subscribers) at the end
of November 2020. With the arrival of the ‘unlimited service’
subscription, and free accesses to OTT platform like Netflix,
Disny+Hotstar and Amazon Prime Video the telecom industry
is set to expand even further.
15. Foreign Direct Investment in
Telecommunication Industry
From 2000 to 2021 telecommunication Industry has attracted
US$ 45billion in Foreign Direct Investment.
In 2020 Reliance Jio attracted more than US$ 20billion FDI.
16. Market Players
The Indian telecom sector has mix of Indian and foreign
telecom companies. Major players are:
35%
11
25
29
Market Share
Jio
BSNL/MTNL
VI
Airtel
17. • Reliance Jio
Reliance Jio Infocomm (known as Jio), is an Indian mobile network operator
launched in 2016. Owned by Mukesh Ambani led Reliance Industries Limited
headquartered in Mumbai, Maharashtra. Mukesh Ambani led Reliance Jio has 35%
of market share of subscribers.
• Government owned BSNL and MTNL
Government owned BSNL and MTNL had a market share of only 11%.
• Vodafone-Idea
Vodafone and Idea announced their merger in 2017, which made a huge impact in the
Indian telecom sector. But now known as VI is struggling for survival because of
Adjusted Gross Revenue (AGR) dues of Rs 50,400 crore that company owes to the
Govt. Currently Vi holds 25% of the market share.
• Bharti Airtel
Bharti Airtel is a leading global telecommunication company with operations in 18
countries across Asia and Africa. Headquartered in New Delhi , India, the company
ranks amongst the top 3 mobile service providers globally in terms of subscribers.
Bharti Airtel currently hold 29% of market share.
18. Growth drivers
• Growing young population & Changing lifestyle
• Increasing rural market
• Favorable policy support
