Lok Sabha Question No. 2319 (UNSTARRED), answered on 2018-08-01
Subject: Employment in IT Sector
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: LAKHAN LAL SAHU

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS ANDINFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 2319

TO BE ANSWERED ON: 01.08.2018

## EMPLOYMENT IN IT SECTOR

## 2319. SHRI LAKHAN LAL SAHU:

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

- (a) whether  the  Government  has  provided  sufficient  financial  and  infrastructure  facilities  with  a  view  to create employment opportunities in Information Technology and IT enabled services;
- (b) if so, the State-wise details thereof;
- (c) the total number of professionals and employees engaged in IT companies under Government, Public and Private Sectors; and
- (d) the number of new employment opportunities likely to be created in this sector in near future?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI S.S. AHLUWALIA)

(a)  and  (b):      Yes,  Sir.      India's  Digital  Economy  has  received  a tremendous  boost  through  various  Government Initiatives  such  as  Digital  India  covering  e-Government  Services,  Common  Service  Centres  (CSCs),  BPO Promotion Schemes, Digital Payments, Electronic Manufacturing, and Digital Saksharta Abhiyaan; e-Commerce, GST Network, Make in India, Start-up India, Skill India, e-Health, Smart Cities, and e-Agriculture Market Place/ Digital Mandis.

The India BPO Promotion Scheme (IBPS) launched by the Government aims to incentivize 48,300 seats BPO/ITeS operations with an outlay of ` 493 crore. The objectives of the scheme are to create employment opportunities for the  youth  and  promotion  of  investment  in  IT/ITeS  sector  across  the  country,  particularly  in  small  cities/  towns including  rural  areas.      The  total  48,300  seats  have  been  distributed  across  the  States/  UTs  based  on  respective population percentage as per Census 2011. The State/ UT wise list of seats distributed under IBPS is at Annexure . Further, additional allocation of seats can be made to any State/ UT, based on demand, subject to overall availability of seats under the scheme.

Similarly, the Government has initiated a separate 'North East BPO Promotion Scheme (NEBPS)', with an outlay of ` 50 crore to incentivize 5,000 seats BPO/ITeS Operations in the North East Region.  However, there is no State wise distribution of seats in NEBPS; the total 5,000 seats are for the entire North East Region.

The  Schemes  provide  financial  support  of  up  to ` 1  lakh  per  seat  in  the  form  of  Viability  Gap  Funding  (VGF) towards  Capital  and  Operational  expenditure.    The  Schemes  also  provide  special  incentives  to  the  units  for promoting employment to women and especially abled persons, setting-up operations in locations other than the State Capital, generating employment beyond target, and promoting local entrepreneurs, within the overall financial support of ` 1 lakh per seat.

Additionally, the schemes to promote Electronic Manufacturing, Digital Payments and CSCs have in-built financial incentives.

(c)  and (d):  As regards the employment in IT and ITeS sector, the number of employees has increased to 39,68,000 in FY 2017-18 with an addition of 1,05,000 to 38,63,000 in FY 2016-17.  The hiring trend is projected to remain similar in the CFY 2018-19.

The  various  Government  initiatives  such  as  CSCs,  BPO  Promotion  schemes,  Electronic  Manufacturing,  Digital Payments, and Digital Saksharta Abhiyaan have additionally generated nearly 15 lakh jobs over the last two years. This includes about 5 lakh jobs due to the growth in the Electronic Manufacturing Sector.

The  various  Government  initiatives  including  Digital  India  coupled  with  new  and  emerging  technologies  are enhancing  the  digital  economy  foot  print  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.    According to NASSCOM, it is estimated that the IT-BPM sector would continue to be a net hirer at a rate of 3% to 3.5% year-on-year in near future.

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## Annexure

| IBPS Seats Distribution across State(s)/UT(s) based on population %as per Census 2011   | IBPS Seats Distribution across State(s)/UT(s) based on population %as per Census 2011   | IBPS Seats Distribution across State(s)/UT(s) based on population %as per Census 2011   | IBPS Seats Distribution across State(s)/UT(s) based on population %as per Census 2011   | IBPS Seats Distribution across State(s)/UT(s) based on population %as per Census 2011   |
|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| State/UT                                                                                | Population                                                                              | Population %                                                                            | Seats by population %                                                                   | Seats Rounded- off to nearest hundred                                                   |
| Andhra Pradesh                                                                          | 493,86,799                                                                              | 4.56                                                                                    | 2,189                                                                                   | 2200                                                                                    |
| Bihar                                                                                   | 1040,99,452                                                                             | 9.61                                                                                    | 4,615                                                                                   | 4600                                                                                    |
| Chhattisgarh                                                                            | 255,45,198                                                                              | 2.36                                                                                    | 1,132                                                                                   | 1100                                                                                    |
| Goa                                                                                     | 14,58,545                                                                               | 0.13                                                                                    | 65                                                                                      | 100                                                                                     |
| Gujarat                                                                                 | 604,39,692                                                                              | 5.58                                                                                    | 2,679                                                                                   | 2700                                                                                    |
| Haryana*                                                                                | 230,44,841                                                                              | 2.13                                                                                    | 1,022                                                                                   | 1000                                                                                    |
| Himachal Pradesh                                                                        | 68,64,602                                                                               | 0.63                                                                                    | 304                                                                                     | 300                                                                                     |
| Jammu &Kashmir                                                                          | 125,41,302                                                                              | 1.16                                                                                    | 556                                                                                     | 600                                                                                     |
| Jharkhand                                                                               | 329,88,134                                                                              | 3.05                                                                                    | 1,462                                                                                   | 1500                                                                                    |
| Karnataka*                                                                              | 525,95,898                                                                              | 4.86                                                                                    | 2,333                                                                                   | 2300                                                                                    |
| Kerala                                                                                  | 334,06,061                                                                              | 3.09                                                                                    | 1,481                                                                                   | 1500                                                                                    |
| Madhya Pradesh                                                                          | 726,26,809                                                                              | 6.71                                                                                    | 3,219                                                                                   | 3200                                                                                    |
| Maharashtra*                                                                            | 889,10,077                                                                              | 8.21                                                                                    | 3,941                                                                                   | 3900                                                                                    |
| Orrisa                                                                                  | 419,74,218                                                                              | 3.88                                                                                    | 1,861                                                                                   | 1900                                                                                    |
| Punjab                                                                                  | 277,43,338                                                                              | 2.56                                                                                    | 1,230                                                                                   | 1200                                                                                    |
| Rajasthan                                                                               | 685,48,437                                                                              | 6.33                                                                                    | 3,039                                                                                   | 3000                                                                                    |
| Telangana*                                                                              | 274,44,644                                                                              | 2.53                                                                                    | 1,214                                                                                   | 1200                                                                                    |
| Tamilnadu*                                                                              | 634,51,020                                                                              | 5.86                                                                                    | 2,813                                                                                   | 2800                                                                                    |
| Uttar Pradesh*                                                                          | 1991,69,960                                                                             | 18.39                                                                                   | 8,827                                                                                   | 8800                                                                                    |
| Uttarakhand                                                                             | 100,86,292                                                                              | 0.93                                                                                    | 447                                                                                     | 400                                                                                     |
| West Bengal*                                                                            | 771,63,579                                                                              | 7.13                                                                                    | 3,422                                                                                   | 3400                                                                                    |
| Andaman &Nicobar Island                                                                 | 3,80,581                                                                                | 0.04                                                                                    | 17                                                                                      | 100                                                                                     |
| Chandigarh                                                                              | 10,55,450                                                                               | 0.10                                                                                    | 47                                                                                      | 100                                                                                     |
| Dadra &Nagar Haveli                                                                     | 3,43,709                                                                                | 0.03                                                                                    | 15                                                                                      | 100                                                                                     |
| Daman &Diu                                                                              | 2,42,911                                                                                | 0.02                                                                                    | 11                                                                                      | 100                                                                                     |
| Lakshadweep                                                                             | 64,429                                                                                  | 0.01                                                                                    | 3                                                                                       | 100                                                                                     |
| Puducherry                                                                              | 12,47,953                                                                               | 0.12                                                                                    | 55                                                                                      | 100                                                                                     |
| Total                                                                                   | 10828,23,931                                                                            | 100.00                                                                                  | 48,000                                                                                  | 48,300                                                                                  |

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| Note:                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1. Total 48,000 seats have been distributed based on population percentage among States/UTs as per                                                                                                                                                                                                      |
| Census 2011, and then rounded-off to nearest 100.                                                                                                                                                                                                                                                       |
| 2. Minimum seats support for a State/UT = 100                                                                                                                                                                                                                                                           |
| 3. *Population of all the States of North East Region and Urban Agglomeration Population of certain cities [Bengaluru, Chennai, Delhi-NCR (Gurugram, Faridabad, Noida), Hyderabad, Kolkata, Mumbai, Pune] is subtracted from the respective State's Population and subsequently from overall population |
| of Country.                                                                                                                                                                                                                                                                                             |

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