2. INTRODUTION AND MEANING
Information technology is the application of
computers and telecommunications equipment to
store, retrieve, transmit and manipulate data.
Indian IT companies like Tata Consultancy Services,
Wipro Technologies, Infosys, HCL Technologies etc
are very successful companies. it also includes
Information Technology Enabled Services like
BPO,KPO etc. the three branches of IT sector are :
• Computer Technology
• Electronics
• Telecommunications
3. COMPUTER INDUSTRY
It has emerged as one of the fastest growing industry if
India. It includes two components, hardware refers to
computers and software refers to programming.
GROWTH OF COMPUTER INDUSTRY
(rs. In crore)
Component Production Exports
1997-98 2010-11 1997-98 2010-11
1. Hardware 22,100 1,21,760 3,000 40,400
2. Software 9,970 3,96,760 9,500 3,06,800
Total 32,070 5,18,520 12,500 3,47,200
4. FEATURES AND CAUSES OF GROWTH
Export Oriented Public investment in
High Growth Rate
human capital
Reduction of custom
Growth Rate of
duty
Hardware
Special economic
Number of Software
zones
companies
Software parks
Direction of Exports
Special efforts for
Top software computer security
companies High quality free
Main customers software
Domestic market Wide penetration of
IT centers
5. ELECTRONICS INDUSTRY
Electronic industry is ranked 26th in the world in
terms of sales and 29th in the world in terms of
production. It is growing at over 25% CAGR
(compound annual growth rate) and is expected
to be worth US $ 158 billion by 2015.
Electronics Production of Major Items (rs. In
crore)
ITEMS 1997-1998 2009-2010
Industrial Electronics 3,150 13,630
Computers 28,00 14,430
Communication and 3,250 31,390
Broadcasting Equipments
6. TELECOMMUNICATION INDUSTRY
The first National Telecommunication Policy was
announced in year 1994. at that time telephone
density was one telephone for hundred people and
in 2011 density went up to 76.86%.
Telecommunication Regulation Authority of India
was established in 1997 by an act amended in year
2000. In 2008 3G mobile service launched in India.
In 2011 private sector accounted 86% and public
sector accounted 14% of business. BSNL and MTNL
are public sector companies and Air Tel, Idea,
Reliance, Vodafone etc are private players in this
industry.
7. NUMBER OF SUBSCRIBERS OF
TELECOMMUNICATION (IN LAKH)
Year Total Subscribers
1996-97 1,44.34
2000-01 3,57
2008-09 4,298
2009-10 6,213
2010-11 8,463
Dec. 2011 9,266
8. RECENT POLICIES IN IT SECTOR
All capital goods and inputs required in manufacture of
IT products are exempted from excise duty.
Expenditure incurred on R $ D in IT sector is allowed
weighted deduction of 200% while computing taxable
profit.
IT Venture Capital Fund worth rs. 100 crore was set up
for technology upgradation.
To promote IT industry government has earmarked 1
to 3% budget of every ministry for IT application.
Computers have been exempted from excise duty.
Second hand capital goods are permitted to get
imported.
9. RECENT POLICIES IN IT SECTOR
IT Act 2000 is enacted to provide legal recognition
to electronic records and to prevent computer
crimes. IT (Amendment ) Act 2008 was enacted to
strengthen legislation pertaining to information
security and to check new forms of cyber crimes.
The department of IT is setting up Nano Electronic
Centers.
TRAI was established to regulate
telecommunication sector.
10. CHALLENGES IN IT INDUSTRY IN INDIA
Increasing foreign competition.
Increasing cyber crimes
Fast changing technology
Withdrawal of tax concession
Shortage of high quality manpower
Effects of recession in developed nations
11. CONCLUSION
• IT industry has been emerging India specially in
IT enabled services and software.
• The Indian software and services have
established credentials in providing high
quality solutions to the world.
• In the year 2010-11 Indian IT industry
controlled more than half of global business.
• IT industry is providing direct employment to
about 2.8 million, and indirectly employing 8.9
million people.
