Indian IT sector posts healthy growth despite economic slowdown

The Indian IT and ITeS sector continues to maintain healthy growth rate despite the economic slowdown and global financial crisis. With the annual growth rate of the IT companies remaining above 20 per cent, no major adverse impact of the slowdown is expected on this sector.

The total software and services export is estimated at US $ 40.4 billion in 2007-08 as compared to US $ 12.9 billion in 2003-04. During the year 2008-09, it is expected that the employment in the IT/ITeS industry would grow from 20 lakh to 22.3 lakh.

FDI (Foreign Direct investment) in computer software and hardware too has shown phenomenal growth. During the first six months of the current fiscal year (April-September 2008), FDI inflow in IT sector has already reached US $ 1.4 billion against the same level of FDI inflow during the whole of previous year.

Seventeen proposals, involving an investment of the order of Rs.1,57,000 crore have been received over a period of 10 years under the Special Incentive Package Scheme (SIPS). The Scheme, which aims at encouraging investments for setting up semiconductor fabrication and other micro and nano technology industries in the country, has received a positive response from prospective investors.

Source : Equity Bulls

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