In India, the software boom started in the late 1990s. The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in 2017. According to NASSCOM, the sector aggregated revenues of US$ 160 billion in 2017, with export revenue standing at US$ 99 billion and domestic revenue at US$ 48 billion, growing by over 13%. The United States accounts for two-thirds of India's IT services exports.
Recent Developments The Government is driving forward reforms in IT and electronics manufacturing sector through major initiatives like ‘Make in India ‘and by creating favourable policies to enable and investor friendly environment. National Supercomputing Mission
National Policy on Electronics 2018
Impact of Digital India Initiative by 2019
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India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.
Export revenue of the industry is expected to grow 7-9 per cent year-on-year to US$ 135-137 billion in FY19. The industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.
Challenges faced by the IT sector in India