CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY

ECONOMICS I

Submitted By-
AGNIVA DAS
UID: SM0118003

B.A. LL.B. 2nd Year, 3rd Semester

Faculty In Charge

Ms. Dipakshi Das

NATIONAL LAW UNIVERSITY, ASSAM

GUWAHATI

1 NOVEMBER, 2019
 TABLE OF CONTENTS
CONTENTS PAGE NO.

1. Introduction 2
1.1 Overview
1.2 Literature Review
1.3 Research Question
1.4 Scope and Objective
1.5 Research Methodology

2. WHAT IS INFORMATION TECHNOLOGY 6

3. EVOLUTION OF IT INDUSTRY IN INDIA 8

4. GLOBAL INVESTMENTS IN IT INDUSTRY IN INDIA 12

5. CONTRIBUTION OF IT SECTOR TO INDIA‟S GROWTH 14

6. CONCLUSION 19

Bibliography

1
 CHAPTER - 1
INTRODUCTION
1.1 Overview

After decade of slowly expanding behind the scenes, Information Technology has suddenly
exploded into public view and seems to be everywhere, in the popular media. It is like a huge
wave that has been building offshore. These aspects of information technology are just a few of
The thousands of ways in which information technology will affect the way we work, live and
play.

Information technology has changed dramatically. Not long ago, information was processed
using electrical or mechanical devices such as typewriters, calculators and telephones, which
stood by themselves as if on information processing islands. Calculations made with a calculator
had to be typed into a documents. Secretaries always had to be on hand to answer the phones.
Mail could be sent only in printed form.1

Today, all these devices and procedures have been automated and many of their functions are
controlled by Micro Processors unit. But it is not just that individual machines have been
improved. The most dramatic changes how all those old information island are being connected
by digital highways.2 Once information is created in any form, text, sounds, pictures, animation
or movies, it can be instantly distributed or changed to other form in a variety of ways.

1
Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION TECHNOLOGY IN GROWTH OF INDIAN
ECONOMY.” International Journal of Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 ) p. 03
2
Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”, International Journal of Research, Chaudhary
Charan Singh University, Meerut (IJORCCSU, Volume 3 Issue 8, January 2010)

2
Technology is advancing so rapidly that previously isolated fields such as television, phone,
computers, and radio are all converging into single files. Surfing hundred of digital TV channels
for home shopping, infomercials, News and entertainment won't be all that demanding. 3 But
that's only the crest of a huge information technology were that is rolling into your path. To be
ready of this new wave both at home and, at work, you have to understand the concepts and
application of digital information technology.4

The IT industry has contributed to the growth and development of the country in terms of various
economical and social aspects through its “for-profit” as well as “not-for-profit” activities. This
particular study, attempts to identify areas in the economic and social sector where IT industry
has made a significant contribution

3
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)
4
Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”, International Journal of Research, Chaudhary
Charan Singh University, Meerut (IJORCCSU, Volume 3 Issue 8, January 2010)

3
 1.2 Literature Review

1. Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION

TECHNOLOGY IN GROWTH OF INDIAN ECONOMY.” International Journal

of Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 )

This article explores the new and latest contemporary issues regarding Indian IT Industry‟s
contribution in economy of nation. In addition to these it focuses on other areas such as market
profile and product constraints of Indian IT Services, to study performance of Indian IT industry,
catalytic product‟s role of IT Industry in Indian Economy, analysis the India‟s International
Trends in IT Products opportunity for attracting FDI, and Information Technology Agreement
for IT Sector.

2. Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”,

International Journal of Research, Chaudhary Charan Singh University, Meerut
(IJORCCSU, Volume 3 Issue 8, January 2010)

This article explores the significant economic and social contribution of the IT Industry activities
to the national economic growth. Information technology (IT) is an example of a general purpose
technology that has the potential to play an important role in economic growth, as well as other
dimensions of economic and social development. This article reviews several interrelated aspects
of the role of information technology in the evolution of India‟s economy. It considers the
unexpected success of India‟s software export sector and the spillovers of this success into
various IT enabled services, attempts to make IT and its benefits available to India‟s rural
masses, e-commerce for the country‟s growing middle class, the use and impacts of IT in India‟s
manufacturing sector, and various forms of e-governance, including internal systems as well as
citizen interfaces

4
1.3 Research Questions
1. What is the meaning of Information Technology ?
2. How has the IT sector evolved in India ?
3. What has been the impact of IT sector in Indian Economics ?

1.4 Scope and Objective

 Scope
The scope of the project is limited to the study of Information Technology, how it
evolved in India and its contribution to the Indian Economy and GDP.

 Objective
1. To study the evolution of the IT sector in India.
2. To study the Growth of the Economy due to Information Technology Sector.

1.5 Research Methodology:

 Approach to Research: In this project doctrinal research was involved. Doctrinal
Research is a research in which secondary sources are used and materials are
collected from libraries, archives, etc. Books, journals, articles were used while
making this project.
 Types of Research:Explanatory type of research was used in this project, because
the project topic was not relatively new and unheard of and also because various
concepts were needed to be explained.
 Sources of Data collection: Secondarysource of data collection was used which
involves in collection of data from books, articles, websites, etc. No surveys or
case studies were conducted.

5
 CHAPTER – 2
WHAT IS INFORMATION TECHNOLOGY

In order to understand the role of IT sector in Indian Economics, first we need to understand
what the actual meaning of Information Technology is as many people have a very vague idea
about the genuine meaning of IT.
First we need to split the term Information Technology into “Information” and “Technology”
and understand them individually.

Information - Information is the act of informing or the conditions of being

informed, the communication of knowledge, and knowledge derived from
study, experience, or instruction.

Technology - Technology is the application of science, especially to industrial or

commercial objectives. We may hear terms such as information
age, information society, and knowledge workers and wonder what they all
mean. What these and other such terms refer to is one aspect or another of
the increased role that information technology is playing in our lives and
career.

The phrase information technology (IT) refers to the creation, gathering, processing, storage, and
delivery of information and the processes and devices as tools that makes all the possible. Think
of these processes and devices as tools that makes our life and career better or more efficient.
The tasks that are handled using information technology continue to increase almost on a daily
basis. For example, a few years ago, cinematography and photography didn‟t use computers at
any point in the process.5 Now, computers are in -cameras, processing nibbles and the editing
room. No matter what field of study we major in, or where we are employed, we will be sure to
find information technology at work.

5
Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”, International Journal of Research, Chaudhary
Charan Singh University, Meerut (IJORCCSU, Volume 3 Issue 8, January 2010)

6
Information technology can process raw data into useful information. Imagine taking a series of
tests in College. The score on each does not tell us much. We could be sick on the day of a test,
or not doing well on the topics currently being covered. Over the semester, we will get a whole
range of test score between A and F. Each of these is just one bit of raw data. To turn these
scores into information, we need to convert them into a grade for the course, useful information
because its measure of our overall performance. The teacher can now decide if we pass or fail the
course.
Information technology can recycle processed information and use it as data in another
processing step. For example, already processed data can be combined with other information to
increase its impact. The grade we get in a course can be combined with our other course
grades to calculate quality point average. 6 This is very useful information because its single
grade based ultimately on hundred of pieces of data, all the tests we‟ve taken.

Information technology can package information in a new form so it‟s easier to understand, more
attractive, or more useful. All the quality point averages of our classmates can be stored into
descending order or placed on a chart so we quickly see how our stand in relations to everyone
else.

Information technology stands firmly on two legs: HARDWARE AND SOFTWARE:

The term HARDWARE is applied to any of the physical equipment in a system usually
containing electronic components and performing some kind of function in information
processing. Hardware includes not only the computer and devices such as screens and printers,
but also all the elements used to tie information systems together.7

SOFTWARE is instructions that guide the hardware in the performance of its duties. There is a
slogan button floating around that makes this distinction very clear Hardware: the part of the
computer that we kick.

6
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)
7
Nirvikar Singh, INFORMATION TECHNOLOGY AND ITS ROLE IN INDIA’S ECONOMIC DEVELOPMENT: A REVIEW,
University of California Journal (Volume 16 Issue 4, 2014)

7
 CHAPTER – 3
EVOLUTION OF IT INDUSTRY IN INDIA

The origin of IT industry in India can be traced back to 1974 when Tata Consultancy Services
(TCS) got its first US client - Burroughs Corporation, United States. The job assigned was to
write software code for the Burroughs machines. With that opportunity started the growth story
of TCS, now a $10 billion company. Other IT giants of today also started their growth stories
with modest beginnings (WIPRO in 1966, Infosys in 1981). During this period private
businesses were not easy in India due to Government‟s strict restrictions and regulations. Things
brightened up only after 1991 with the government‟s policies of liberalization.

Evolution of the IT sector can be studied in 5 stages –

 Stage 1 (Before 1980): In this first stage, Indian software industry was almost non-
existent. IT industry in India started with hardware products. This sector was protected by
the Indian Government through licensing and high tariff rates. When Indian Government
realized the potential of software sector to earn foreign exchange, it allowed import of
hardware and export of software through its new software export scheme formulated in
1972. TCS was the first beneficiary of this scheme in 1974.

 Stage 2 1980 to 1990: Though the software exports were started by some high profile
companies like TCS, WIPRO, Infosys etc., the results were not very encouraging. There
were some problems with government policies like the export of software was dependent
on the imports of hardware. Moreover there were no appropriate infrastructural facilities
for software development. IT industry was under a lot of pressure.8 It was only in 1986
that the Indian Government took decision to liberalize the IT sector and de-licensed the
imports of hardware and for exporters, it was duty free.

8
Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION TECHNOLOGY IN GROWTH OF INDIAN
ECONOMY.” International Journal of Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 ) p.08

8
  Stage 3 1990 to 2000: This period has observed intensified competition in the IT sector.
During this stage, there were some substantial changes in Indian economy, including
relaxation in the entry barriers, trade liberalization, opening up of Indian economy for
foreign investments. Software front was moving more towards standardization and
productivity improvement.9 Due to the liberalization, a flow of foreign investments came
in India and MNCs in India were introduced. “Offshore Model”, “Onsite Model” and
“Global Delivery Model (GDM) were introduced as part of the services.

 Stage 4 2000-2010: 2000-2010 has been a period of rapid growth of the IT industry.
Software service companies were earning good amount of foreign exchange as a result of
cheap hardware, faster communication, and setting up of Software Technology Parks. In
2005 Special Economic Zone (SEZ) Act was passed. It helped in importing duty free
hardware, and income tax exemption on exports for 10 years. The result was an increase
in the number of software companies. Information Technology Act passed in 2000 gave a
boost to e-commerce. National broadband policy announced in 2004 made broadband
available to 20 million Indians by 2010.

The policy of allowing companies to have 100% ownership without the need for an Indian
partner helped large multinationals open their development centers in India ( Accenture, CISCO,
DELL, GE, Oracle, Adobe, SAP, Philips, HP, and Google). CDAC designed a parallel machine
named PARAM PADMA in 2003 which used 248 processors and a proprietary interconnection
network. Its peak speed was 992 gigaflops and it was ranked 171 in the top 500 list of high
performance computer in the world. Another important development during the period
1998‐2010 was the increasing use of computers in all walks of life like banks, offices, railway
stations airports, Income Tax department etc. E‐Governance grew rapidly during this period.10

9
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)
10
Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”, International Journal of Research, Chaudhary
Charan Singh University, Meerut (IJORCCSU, Volume 3 Issue 8, January 2010)

9
  Stage 5 Post 2010: Post 2010, India has become world‟s largest sourcing destination for
IT industry. Online retailing, cloud computing and e-commerce are all contributing to
speedy growth of the IT industry. The rate of growth in IT sector for 2016-17 is
approximately 12-14%. India‟s internet user base is the third largest in the world. Cloud
services revenue in India is expected to reach US$ 1.26 billion in 2016, (growth of 30.4
per cent).

Thus we can see that IT sector has a remarkable potential for accelerating economic growth of
the nation. It has the potential to improve the productivity of almost all sectors of economic
development. Information technology has made our governance efficient. It enhances access to
information, provides access to government services, protects consumers, makes skill
development and training more effective, progresses delivery health. services, and promotes
transparency. The role of IT industry in enhancing the economic development of the country has
been acknowledged by the government of India.11

There are five principal components of IT industry –

(i) Online business (ecommerce)
(ii) IT services,
(iii) ITES (IT Enabled Services) e.g. BPO
(iv)Software Products
(v) Hardware.

All these components are progressing well and are responsible for ongoing growth curve of
India‟s economy with a steady rise in revenues as witnessed in the past few years.

11
Nirvikar Singh, INFORMATION TECHNOLOGY AND ITS ROLE IN INDIA’S ECONOMIC DEVELOPMENT: A REVIEW,
University of California Journal (Volume 16 Issue 4, 2014)

10
IT / ITES industry in India has seen an unparalleled growth since the last decade. Various
initiatives of Government of India and the State Governments like, liberalization of external
trade, elimination of duties on imports of information technology products, setting up of Export
Oriented Units (EOU), Software Technology Parks (STP), relaxation of controls on both inward
and outward investments and foreign exchange, and Special Economic Zones (SEZ), have helped
IT industry to gain dominant position in world‟s IT scenario. So we can say that the IT industry
has matured over the years and has proved to be a major contributor to the global economic
growth. It has helped India to emerge as a global force in today‟s ever-increasing competitive
and demanding environment.12

12
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)

11
 CHAPTER – 4
GLOBAL INVESTMENTS IN IT INDUSTRY IN INDIA

A number of foreign investors are investing in Indian software industry thus contributing to the
growth of Indian economy. These investments are mainly in the form of –

FOREIGN DIRECT INVESTMENT

There are a number of multinational companies in India that invest directly in their businesses in
India e.g. Google, Accenture, Microsoft etc. Apple is also planning to manufacture its products
in India. These companies get the benefit of employing Indians (India produces good number of
software engineers every year from a large number of reputed educational institutions) at very
reasonable salaries.13
As per Department of Industrial Policy & Promotion, Government of India, Ministry of
Commerce and Industry, FDI Equity Inflows for Computer Software & Hardware from April
2000 to December 2016 was ₹124,333 crores i.e. US$ 22,832 million. It was 7% of the total FDI
Equity Inflows.

FOREIGN INSTITUTIONAL INVESTMENTS

Indian economy is growing fast and has attracted the attention of foreign investors as a
promising market for investment. Many countries like US, Malaysia, Singapore, China, and
Dubai have invested in Indian stocks that include the IT sector.
India has been placed in third rank among the countries that are considered to be most attractive
investment destinations for technology transactions as per the report of Ernst & Young's (EYs)
Global Capital Confidence Barometer (CCB).14

13
Nirvikar Singh, INFORMATION TECHNOLOGY AND ITS ROLE IN INDIA’S ECONOMIC DEVELOPMENT: A REVIEW,
University of California Journal (Volume 16 Issue 4, 2014)
14
Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”, International Journal of Research, Chaudhary
Charan Singh University, Meerut (IJORCCSU, Volume 3 Issue 8, January 2010)

12
Foreign Institutional Investors (FII) holdings in all National Stock Exchange (NSE) listed
companies ₹ 19.32 lakh crores in the quarter ending March 2015. Out of this ₹ 2.77 lakh crores is
in Indian IT sector. Cumulative value of investments by FIIs during April 2000-December 2015
stood at US$ 179.32 billion.

EARNING FROM OFFSHORE DESTINATIONS

India is one of the leading offshore destination in delivering engineering research and
development (ER&D) services with a greater market share. In 2004-05, India earned US $ 18.05
billion through software exports and in 2014-15 it reached 99.64 billion USD. Currently, export
accounts for around 80% of the total IT sector revenue.15

INDIAN IT PRODUCTS EXPLORING NEW HORIZONS

An indicator of the growing influence of Indian IT products is the partnership between various
Indian IT firms and high profile events/brands and use of „Made in India‟ software products
worldwide.
Tata Consultancy Services has entered into an agreement with Scudery Ferrari to provide the
entire software to the Italian automaker‟s Formula One cars. TCS will work with the Ferrari F1
team to provide IT-based solutions before, during and between races.

Satyam is the first Indian company to sign up as a FIFA World Cup Sponsor. This agreement
awards Satyam global rights for the 2010 FIFA World Cup in South Africa, the 2014 FIFA
World Cup in Brazil and the two FIFA Confederations Cups which fall within the 2007-2014
period as the sponsor and official information technology (IT) services provider.16

15
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)
16
Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION TECHNOLOGY IN GROWTH OF INDIAN
ECONOMY.” International Journal of Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 )

13
 CHAPTER – 5
CONTRIBUTION OF IT SECTOR TO INDIA’S GROWTH

Indian IT industry has achieved phenomenal growth during the post-economic reform period.
The liberalized policy regime, fast technological advancement, declined prices of computer
hardware, mushrooming of computer science and Technology education, readiness of a large
pool of talent to the industry relatively at lower cost, all together have made significant
contribution to the growth of this industry during the last 25 years.

In the last two decades, the Indian IT industry has contributed significantly to Indian economic
growth in terms of GDP, foreign exchange earnings and employment generation. However,
equally significant though not as tangible, has been the ripple effect it has created on the general
economic environment in the national and international economic space. The industry has been
the trigger for many “firsts” and has contributed not only to unleashing the hitherto untapped
entrepreneurial potential of the middle class Indian but also taking Indian excellence to the
global market. Some of the direct and indirect impact of the industry in the economic scenario
has been discussed in the following paragraphs.17

Indian information technology industry has grown manifold during the period 1991-92 to 2015-
16. There are around 600 centers set up by Indian IT companies in 78 countries catering to the IT
related requirements of people in over 200 cities. They are performing very well and showing
remarkable double digit growth in terms of national GDP. In the financial year 2015-16, our
revenues have grown from 1.2 per cent to nearly 9.3 per cent. The IT sourcing market of India
has grown from 52% in 2012 to about 56% in 2016. By 2020, this sector is expected to reach
USD 225 billion target. India is becoming one of the most preferred destinations for business
process outsourcing (BPO) as far as IT enabled services are concerned. These services are
boosting Indian economy and this is evident in their contributions to national gross domestic
product (GDP).

17
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)

14
Source: Annual NASSCOM Analysis Report

Source: Annual NASSCOM Analysis Report

15
4.1 DIRECT CONTRIBUTION TO THE INDIAN ECONOMY
The current and evolving role of IT/ITES industry in India‟s economy is well established. The
sector is proving to be the major growth pole within the services sector, which in turn drives
several economic indicators of growth in the country. A few key indicators of direct contribution
are:

Share in national GDP

The Indian IT sector‟s contribution to the country‟s GDP has been steadily increasing over the
last few years. As a proportion of national GDP, the IT/ITES sector has grown from 1.2% in
Financial Year 1998 to 9.3% in Financial Year 2016.

FOREIGN EXCHANGE EARNINGS

If export earnings of the industry are considered as an indicator of contribution to foreign
exchange reserves of the country, the IT/ITES industry has clocked an impressive growth of
32.6% in Financial Year 2007. Export earnings for Financial Year 2008 stood at approximately
USD 40.0 billion as compared to USD 18.3 billion in Financial Year 2005.

Source: Department of Industrial Policy and Promotion statistics, Department of Information

and Technology.

16
EMPLOYMENT GENERATION

The direct employment in the IT/ITES sector is expected to be 2.0 million by end of Financial
Year 2008 and has been growing at a Compound Annual Growth Rate of 26% in the last decade.
This makes it the largest employer in the organized private sector in the country. As per data
from Ministry of Labour & employment (DGET), IT services accounted for almost 12% of the
employment in organized private sector in 2004 and have now doubled.

Source: Department of Industrial Policy and Promotion (DIPP) statistics, Department of

Information and Technology

4.2 INDIRECT CONTRIBUTION TO THE INDIAN ECONOMY

The growth of the Indian IT/ITES industry and its resultant contribution to the economic growth
of the country has also had wider impacts like indirect employment generation, driving the
growth of other sectors, fuelling the rise and growth of Private Equity (PE)/Venture Capital (VC)
funding, spurring the growth of first generation entrepreneurs, improving the product/service
quality level, practicing good corporate governance and boosting the image of India in the global
market.18

18
Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION TECHNOLOGY IN GROWTH OF INDIAN
ECONOMY.” International Journal of Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 )

17
The growth of the IT/ITES sector and its resultant contribution to the economic growth and
development has also resulted in certain wider impacts, which in many cases have had a rub-off
effect and set benchmarks for other sectors of the economy while boosting the image of India in
the global market.

Additional employment generation

The indirect employment generated, at the rate of 4 additional jobs created in the economy for
every 1 job created in the sector, is even more socially relevant as nearly 75% of the workforce
employed in those additional jobs are SSC/HSC or less educated.

Driving growth of other sectors of the economy

Apart from contributing to the growing income of its direct stakeholders (promoters,
shareholders and employees), the IT/ITES industry has had a multiplier effect on other sectors of
the economy with an output multiplier of almost 2 through its non-wage operating expenses,
capital expenditure and consumption spending by professionals. Study show that USD 15.85
billion spent by the IT/ITES industry in the domestic economy in FY06 generates an additional
output of USD 15.5 billion.19

Employment

Supply of IT professionals, which was higher than demand till 2004, now have a shortfall of
62,697. Demand for IT professionals is expected to reach 430,000 by 2011-12 with the
corresponding figures on indirect employment being 1,720,000

Education
While building and expanding capacity of educational institutes are underway, IT majors are
undertaking training initiatives to improve student quality. At least 5 new educational institutions
(including IIIT and IIT Kharagpur campus) by both Government and private players are also
being set up.

19
Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS Journal, (Volume 4)

18
 CONCLUSION
Thus from this project we get an idea that how the IT sector has boosted the Indian Economy and
has a great impact on the Indian Economy. The contribution of India's IT industry to economic
progress has been quite significant. The rapidly expanding socio-economic infrastructure has
proved to be of great use in supporting the growth of Indian information technology industry.

India being a highly connected and digital ready economy remains a high potential market
worldwide offering multiple opportunities. India presents a large and burgeoning end user
market being world‟s second largest population in world. India is all set to leapfrog into the
digital world with 937 million mobile subscribers, 278 million internet users, an USD 14 billion
e-Commerce market. Indian IT industry has grown many manifold since 1980s. The industry has
contributed considerably to the economy in terms of GDP, employments and foreign exchange
earnings. IT industry is also responsible for increasing the competence and productivity of
almost all sectors of the economy like services at banks, post offices, railways, airports etc. e-
governance has increased the efficiency of government offices. In this paper we have analyzed
different ways in which IT industry has contributed to India‟s growth.

IT may have a special role to play in growth and development simply because of empirical
characteristics that apply at the current time. In particular, the recent and continuing rapid
innovation in IT make it a dynamic sector that is an attractive candidate as a contributor to
growth for that reason alone, much as the automobile industry was targeted by the Japanese after
World War II. On the other hand, there may be features of IT that make it attractive from a
theoretical perspective on economic growth.

Moreover, under the Make in India initiative, the Government of India aims to increase the share
of the manufacturing sector to the gross domestic product (GDP) to 25 per cent by 2022, from 16
per cent, and to create 100 million new jobs by 2022.

19
 BIBLIOGRAPHY

 Ishmeet Singh, and Navjot Kaur, “CONTRIBUTION OF INFORMATION

TECHNOLOGY IN GROWTH OF INDIAN ECONOMY.” International Journal of
Research - Granthaalayah, (IJOR, Volume 4 Issue 6, June 2016 )

 Shalini Jain, “IMPACT OF IT INDUSTRY ON THE INDIAN ECONOMY”,

International Journal of Research, Chaudhary Charan Singh University, Meerut
(IJORCCSU, Volume 3 Issue 8, January 2010)

 Mangesh M. Ukey, CONTRIBUTION OF IT SECTOR IN INDIAN ECONOMY, AGBS

Journal, (Volume 4)

 Nirvikar Singh, INFORMATION TECHNOLOGY AND ITS ROLE IN INDIA‟S

ECONOMIC DEVELOPMENT: A REVIEW, University of California Journal (Volume
16 Issue 4, 2014)

 Ashraful Ahmed, THE CONTRIBUTION OF SERVICES TO DEVELOPMENT AND

THE ROLE OF TRADE LIBERALISATION AND REGULATION, Global Forum on
International Investment 2008

 https://www.oecd.org/investment/globalforum/40302909.pdf

 http://www.economicsdiscussion.net/essays/role-of-private-sector-in-the-economic-
development-of-india/2116

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