IT Industry – UPSC GS1

India’s information technology (IT) services industry has traditionally been dominated by exports – but, in the last couple of years, it is the domestic scene which has begun to matter. Examine the factors that have enabled this shift and also examine prospects of such shift. (200 Words)

Factors that have enabled the shift towards domestic growth of IT industry are:
Demand driven factors:
  1. Automation and digitisation of internal as well as external processes of Public Sector Industries. Government’s impetus towards e-governance.
  2. Computerization in banking industry. Almost the entire process of banking are now on the digital platform like CBS, mobile banking, net banking etc.
  3. Digitisation and automation of business.
  4. Rise in e-commerce, dissemination of information through internet/ websites.
Supply Driven:
  1. Higher number of students are going for technical education like B. Tech in IT/Electronics, MCA and related courses owing to growth in number of colleges/ institutes offering the same.
  2. The Indian labour pool is quite skilled in this industry. Many start- ups have emerged in recent times.
Policy Driven
Govt’s IT industry friendly policy towards capacity building of software export like establishment of STPs has helped in growth of expertise and skill in this sector.
Prospects of such shift:
  1. Better delivery of govt and private services.
  2. Increased transparency and efficiency.
  3. Newer opportunities for business.
  4. Emergence of Indian IT firms at global level



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