Lok Sabha Question No. 361 (STARRED), answered on 2018-03-21
Subject: Growth of IT Companies
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: P. KUMAR

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA STARRED QUESTION *361

TO BE ANSWERED ON: 21.03.2018

## GROWTH OF IT COMPANIES

## *361. SHRI P. KUMAR :

Will the Minister of Electronics and Information Technology be pleased to state:

- (a) whether  the  growth  of  Information  Technology  (IT)  companies  has  been  affected adversely due to the policy changes in the United States of America under the present administration;
- (b) if so, the details thereof;
- (c) whether the said policy changes are likely to reduce the jobs in IT sector; and
- (d) if so, the details thereof and the steps 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 *361 FOR 21.03.2018 REGARDING  GROWTH OF IT COMPANIES

……….

(a) and (b): No, Sir.   As  on  date,  seven  H-1B/L-1  visa  related  bills  have  been  introduced  in  the 115 th U.S. Congress that seek to revise the various provisions of the H-1B and L-1 visa programmes. They have yet to go through the full legislative process i.e., to be passed in both Houses and finally assented to by the President. In the previous Congress too, similar Bills were introduced but did not become law.

The Software and Services revenue (including Hardware) was USD 132 Billion and USD 143 Billion in  FY  2014-15  and    FY  2015-16  respectively;  it  crossed  USD  150  Billion  in  the  FY  2016-17  and reached USD 154 Billion.  It is estimated to reach USD 167 Billion in the current FY 2017-18.  The export of software and services is estimated to reach USD 126 Billion in the current FY.  It is the largest  export  sector  for  the  country  comprising  24%  of  total  exports.    Further,  the  software  and services exports are projected to grow at 7% to 9 % and reach nearly USD 135 - 137 Billion in the FY 2018-19.

India's  Digital  Economy  has  received  a  tremendous  boost  through  various  Government  Initiatives such  as  Digital  India  covering  e-Government  Services,  Common  Service  Centres,  BPO  Promotion Schemes, Digital Payments, Electronic Manufacturing, and Digital Saksharta Abhiyaan; e-Commerce, GST Network, Make in India, Start-up India, e-Health, Smart Cities, and e-Agriculture Market Place/ Digital  Mandis.  These  initiatives  coupled  with  new  and  emerging  technologies  are  enhancing  the digital economy of the country and are creating IT and Electronics led new job opportunities in both traditional as well as new sectors of the economy such as Transport, Health, Power, Agriculture, and Tourism.

(c) and (d): Estimation of expected reduction in jobs is conjectural at this stage as various legislative changes  proposed  are  at  discussion  stage  and  not  yet  become  law.    Government  of  India  remains closely engaged with the U.S. Administration and the Congress on all issues relating to movement of Indian  professionals  including  under  the  H-1B  visa  programme.  In  our  engagements,  we  have emphasized  that  this  has  been  a  mutually  beneficial  partnership  which  should  be  nurtured.  Indian skilled professionals have contributed to the growth and development of the U.S. economy and have helped the U.S. retain its competitive edge and innovation advantage.

As regards the employment in IT sector, the number of employees has nearly become 39,68,000 in CFY 2017-18, an addition of 1,05,000, from 38,63,000 in FY 2016-17.  The hiring trend is projected to remain similar to CFY in the FY 2018-19 and technology jobs in related sectors are expected to grow faster with continuous focus on re-skilling.  According to NASSCOM, it is estimated that the IT-BPM sector would continue to hire at a rate of 3% to 3.5% year-on-year to reach 45,00,000 total jobs by 2022.

The  Government  initiatives  such  as  Common  Service  Centres  (CSCs),  BPO  Promotion  schemes, Electronic Manufacturing, Digital Payments, and Digital Saksharta Abhiyaan have generated nearly 15  lakh  additional  jobs  over  the  last  two  years.    This  includes  about  5  lakh  jobs  generated  by  the growth  in  the  Electronic  Manufacturing  Sector.    India  is  becoming  a  promising  centre  of  mobile manufacturing.  In 2014, there were only 2 factories; since this Government has come to power, now 118 factories are manufacturing mobiles and accessories,  including some of the best global brands.

Another programme of BPO in small towns of this Government with due incentives is also finding great  support.    Many  BPOs  have  started  operating  in  small  towns  in  North  East,  J&K,  UP,  Bihar, Maharashtra  and  Southern  States.    This  is  creating  good  employment  locally  for  young  people including women.

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