Lok Sabha Question No. 87 (STARRED), answered on 2017-02-08
Subject: IT Policy
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: G. HARI

## *87. SHRI G. HARI:

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

- (a) whether  international  revenues  from  IT  sector  are  stagnating  and  if  so,  the  details thereof;
- (b) whether the Government proposes to take measures to kick start domestic demand to make  up  for  losses  and  if  so,  the  details  thereof  and  the  action  taken  by  the Government in this regard;
- (c) whether  the  Government  is  also  considering  to  set  up  a  committee  to  study  the factors affecting the IT industry and if so, the details thereof; and
- (d) whether the Government proposes to review the Information Technology Policy to improve the sagging fortunes of the sector and if so, the details thereof?

## ANSWER

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

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

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY)

## LOK SABHA STARRED QUESTION NO. *87

TO BE ANSWERED ON: 08.02.2017

## IT POLICY

## STATEMENT REFERRED IN REPLY TO LOK  SABHA STARRED QUESTION NO. *87 FOR 08.02.2017 REGARDING  IT POLICY

………

(a)  to  (d):    No,  Sir.  International  revenues  from  IT  sector  are  indeed  growing continuously.  The Indian IT-ITES industry has been progressively contributing to the growth  of  exports  and  creation  of  employment  opportunities.  The  total  IT-ITES Industry  revenue  (excluding  hardware)  is  estimated  at  USD  130  Bn  (Rs.  840,000 crore) in 2015-16, including exports of USD 108 Bn (Rs.700,000 crore) growing at a rate of  at 9.1 %.   According to NASSCOM, IT-ITES exports trends over last 4 years are as follows:-

|                     | 2012-13   | 2013-14   | 2014-15   | 2015-16(E)   |
|---------------------|-----------|-----------|-----------|--------------|
| Total in INR Crores | 4,14,630  | 5,27,292  | 6,00,492  | 7,00,000     |

The IT-ITES Industry employs nearly 3.7 million professionals directly and expected to grow to 4.3 million by 2019. Indirect employment is estimated at over 10 million.

-  While there is a continuous growth in exports, there are sustained efforts by the Government  to  further  increase  exports  as  well  as  promote  domestic  IT-ITES industry. Government has been implementing the Digital India Programme with a view to create a knowledge economy and empower citizens. STP scheme, BPO Promotion  schemes,  CSC  2.0,  Make  in  India  &  Skill  India  Programme  have helped  in  generating  demand  and  jobs  at  the  grassroot  level.  MeitY  has  also implemented the NDLM (National Digital Literacy Mission) & DISHA (Digital Saksharta Abhiyan) schemes. The major thrust on less-cash digital economy has led to the emergence of new sectors such as fintech, cyber-security, IOT, big data, data analytics etc.
-  To cater to the domestic demand and generate jobs, mobile phone manufacturing has been given a major boost. 72 new mobile handset and component manufacturing units have been set up in the last 18 months. In 2015-16, about 11 crore mobile phones were manufactured, compared to 5.8 crore in 2014-15.  13 Electronics  Manufacturing  Clusters  (EMCs)  have  been  approved  with  a  project cost  of  Rs.  1658  crore  in  10  States.  Investment  proposals  worth  Rs.  1,  27,  880 crore have been received under Modified Special Incentive Package Scheme (MSIPS). The initiatives  under  Electronics Manufacturing  are expected to  generate about 2,60,000 jobs.
-  The  National  Policy  on  Information  Technology  (NPIT)  -2012  envisages  to increase revenues of IT/ITES Industry from USD 100 billion during 2011-12 to USD 300 billion by 2020 including exports of USD 200 billion. The key strategies

identified in NPIT  2012  include  creation  of an ecosystem  for a globally competitive IT/ITES Industry. As per NASSCOM Perspective 2025, the Indian IT industry is slated for expansion with an annual growth rate of 9 to 11 percent upto 2020 and of 10 to 12 percent from 2020 to 2025. Implementation of Digital India Programme is fulfilling the strategies outlined in the National IT Policy.

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