SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 174

HIGH PRIORITY MARKET - IT
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to 37 more countries thereby taking the total count of
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The Government of India has launched the Digital
countries under the scheme to 150 countries .
Department of Electronics & Information Technology
India program to provide several government services to the people using IT and to integrate the
and M / s Canbank Venture Capital Fund Ltd plan to
government departments and the people of India . The
launch an Electronics Development Fund ( EDF ), which
adoption of key technologies across sectors spurred by
will be a ' Fund of Funds ' to invest in ' Daughter Funds '
the ' Digital India Initiative ' could help boost India ' s
which would provide risk capital to companies
Gross Domestic Product ( GDP ) by US $ 550 billion to
developing new technologies in the area of electronics ,
US $ 1 trillion by 2025 , as per research firm McKinsey .
nano-electronics and Information Technology ( IT ).
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India and the US have agreed to jointly explore
The Human Resource Development ( HRD ) Ministry has
opportunities for collaboration on implementing
entered into a partnership with private companies ,
India ' s ambitious Rs 1.13 trillion ( US $ 16.58 billion )
including Tata Motors Ltd , Tata Consultancy Services
‘ Digital India Initiative ’. The two sides also agreed to
Ltd and real-estate firm Hubtown Ltd , to open three
hold the US-India Information and Communication
Indian Institutes of Information Technology ( IIITs ),
Technology ( ICT ) Working Group in India later this
through public-private partnership ( PPP ), at Nagpur ,
year .
Ranchi and Pune .
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The Government of Telangana has begun construction
Government of India is planning to develop five
of a technology incubator in Hyderabad — dubbed T-
incubation centres for ' Internet of Things ' ( IoT ) startdestination
Hub — to reposition the city as a technology
ups , as a part of Prime Minister Mr Narendra Modi ' s
. The state government is initially investing
Digital India and Startup India campaign , with at least
Rs 35 crore ( US $ 5.14 million ) to set up a 60,000 sq ft
two centres to be set up in rural areas to develop
space , labelled the largest start-up incubator in the
solutions for smart agriculture .
county , at the campus of International Institute of
According to research firm Gartner Inc , the Indian government is expected to increase its spending on information technology ( IT ) products and services by
Information Technology-Hyderabad ( IIIT-H ). Once completed , the project is proposed to be the world ’ s biggest start-up incubator housing 1,000 start-ups .
5.2 per cent to US $ 6.88 billion in FY 2015-16 .
Executive Summery
Strong growth opportunities
The IT-BPM sector in India expanded at a CAGR of 15 per cent over 2010 – 15 , which is 3 – 4 times higher than the global IT-BPM growth , and is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020
Leading sourcing destination
India is the world ’ s largest sourcing destination , accounting for approximately 55 per cent of the USD146 billion market . The country ’ s cost competitiveness in providing IT services , which is approximately 3-4 times cheaper than the US continues to be its USP in the global sourcing market
Largest pool of ready to hire talent
India ’ s highly qualified talent pool of technical graduates is one of the largest in the world , facilitating its emergence as a preferred destination for outsourcing , computer science / information technology accounts for the biggest chunk of India ' fresh engineering talent pool , with more than 98 per cent of the colleges offering this stream
Most lucrative sector for investments
The sector ranks fourth in India ’ s total FDI share and accounts for approximately 37 per cent of total Private Equity and Venture investments in the country Source : NASSCOM , TechSci Research Notes : BPM – Business Process Management , USP – Unique Selling Proposition
Cash Cow
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In 2015 , revenues of Indian IT-BPM market reached USD146.5 billion Indian IT companies have helped clients to save USD200 billion in the last five years 640 offshore development centres for 78 countries
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