Lok Sabha Question No. 3878 (UNSTARRED), answered on 2017-08-09
Subject: Decline in Growth of IT Sector
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: RITI PATHAK

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO.  3878

TO BE ANSWERED ON: 09.08.2017

## DECLINE IN GROWTH OF IT SECTOR

## 3878.

SHRIMATI RITI PATHAK:

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

- (a) whether there is  stagnation  in  the  International  Revenue  Earnings  from  the Information Technology sector and if so, the details thereof;
- (b) whether the Government proposes to take steps to increase domestic demand to compensate the deficit and if so, the details thereof and action taken by the Government in this regard;
- (c) whether  the  Government  proposes  to  constitute  any  committee  to  study  the  factors  affecting  the Information Technology sector and if so, the details thereof; and
- (d) whether  the  Government  proposes  to  review  the  Information  Technology  Policy  to  increase  the diminishing job opportunities in the sector and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P. P. CHAUDHARY)

- (a):        The  Indian  IT-ITeS  industry  has  been progressively contributing to the growth of economy through increasing exports.  According to National Association of Software and Services Companies (NASSCOM), the Indian IT-ITES industry export revenue continues to grow at about 8.5% and is estimated to reach US $ 117.0 billion in FY 2016-17 as compared to US $ 108 billion in FY 2015-16.   IT-ITeS sector is the largest export  sector  for  the  country  with  over  ~49%  share  of  total  services  exports.  The  total  IT-ITeS  Industry revenue (excluding e-Commerce) over the last 3 years is as under:

## (US$ in Billion)

|                           |   2014-15 |   2015-16 |   2016-17(E) |
|---------------------------|-----------|-----------|--------------|
| Exports                   |      97.8 |       108 |          117 |
| Domestic (incl. hardware) |      34   |        35 |           38 |
| Total Revenue             |     131.8 |       143 |          155 |

(E) = Estimate

## (b) and (c):    Do not arise.

- (d):      According  to  NASSCOM,  the  IT-ITES  industry  is  estimated  to employ  nearly  3.9 million  people  in 2017, an addition of ~175,000 people during the year 2016-17.  In addition indirect employment is 1 to 1.2 crore.  Around 6 lakh employments have been made in the IT sector in the last three years.  It is estimated that the industry will remain net hirer in FY 2017-18.   The trend over last 3 years is as follows:

| Year      | Number of Total employees   | Net addition during the year   |
|-----------|-----------------------------|--------------------------------|
| FY2014-15 | 3,485,000                   | 217,000                        |
| FY2015-16 | 3,688,000                   | 203,000                        |
| FY2016-17 | 3,863,000                   | 175,000                        |

Source: NASSCOM

Source: NASSCOM

According  to  NASSCOM,  the  skills  profile  is  set  to  undergo  a  rapid  change  as  demand  for  skills  around digital  technologies  grows  exponentially.  Technologies  such  as  advanced  robotics  and  automation  are changing job roles significantly across industries.  It is believed that technology adoption will only lead to more job creation across sectors in the long run.  More jobs will be created 'because of IT' than in 'core IT'. With the emphasis on 'digital', there are going to be greater job opportunities. Government programmes like Digital India, Make in India, Start-up India, Digital Payments, e-Commerce and Cyber Security are going to create robust employment scenario in the IT area in the country.

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