Lok Sabha Question No. 201 (STARRED), answered on 2016-11-30
Subject: Employment in IT Sector
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: VIRENDRA  KUMAR

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY)

## LOK SABHA STARRED QUESTION NO.  *201

TO BE ANSWERED ON: 30.11.2016

## EMPLOYMENT IN IT SECTOR

## *201. DR. VIRENDRA KUMAR:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) whether the Indian Information Technology companies have created large scale employment opportunities in the Information Technology sector  and  significant  part  of  it  has  been  generated  in  the  United States of America;
- (b) if  so,  the  details  thereof  during  the  last  three  years  and  the  current year;
- (c) whether employment in the country has been generated on an equal pace as generated abroad and if so, the details thereof and if not, the reasons therefor; and
- (d) the corrective action taken by the Government in this regard?

## ANSWER

MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) to  (d):    A Statement is laid on the Table of the House.

## STATEMENT REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO. *201 FOR 30.11.2016 REGARDING   EMPLOYMENT IN IT SECTOR.

………

(a)  to  (d):  Yes,  Sir.  As  per  National  Association  of  Software  and  Services Companies (NASSCOM), the Indian Information Technology (IT) - IT Enabled Services (ITES) exports from India are estimated at US$ 108 billion in 2015-16, with USA accounting for nearly 62% market share. The Indian IT companies have generated significant employment opportunities domestically and also in USA. In 2015, the Indian IT- ITES industry generated about 3.5 million direct jobs in India which is estimated to reach 3.7 million in 2016, out of this around 30% are women employees. The number of indirect jobs created domestically is estimated  at  10  million.    The  jobs  supported  in  USA  by  Indian  IT-ITES companies is a small share of total domestic employment.

Under  the  Digital  India  Programme,  significant  employment  opportunities (Over 5 lakh) have been created through Citizen Service Centres (CSCs) over last  one  year,  mostly  in  rural  areas  across  India.    Further,  the  electronics manufacturing  initiatives under  Digital India is also creating large scale employment opportunities estimated at 1,70,000.

The Indian IT companies supported ~ 4, 11,000 (both direct & indirect) jobs in the US in 2015.   As a share of the total employment in IT-ITES sector in India, the jobs supported in US are as low as 12%. Over the last 5 years, the Indian IT companies have supported the US economy by paying huge tax amounting to US$ 20 billion plus. The comparative employment by Indian IT companies in India and jobs supported in USA is as under:

## '000 numbers'

|                                                                                                        | FY201 1   | FY201 3   | FY201 5   |
|--------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|
| IT-ITES employment in India                                                                            | 2,584     | 3,052     | 3,485     |
| US jobs supported by Indian IT-ITES companies                                                          | 280       | 340       | 411       |
| Share of US jobs supported by Indian IT-ITES companies as a ratio of total IT-ITES employment in India | 11%       | 11%       | 12%       |

According  to  NASSCOM,  the  average  annual  growth  rate  of  employment creation of 8-10% has been observed both domestically as well as in USA.

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