Lok Sabha Question No. 927 (UNSTARRED), answered on 2016-03-02
Subject: Revenue from IT/ITES Industry
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: NALIN KUMAR KATEEL, DODDAALAHALLI KEMPEGOWDA SURESH, B.N. CHANDRAPPA

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (DEPARTMENT OF ELECTRONICS & INFORMATION TECHNOLOGY)

## LOK SABHA UNSTARRED QUESTION No.  927

TO BE ANSWERED ON: 02.03.2016

## REVENUE FROM IT/ITES INDUSTRY

## 927. SHRI NALIN KUMAR KATEEL:

SHRI D.K. SURESH:

SHRI B.N. CHANDRAPPA:

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

- (a) whether the Government has set any target to increase the revenue of IT and ITES Industries in the country;
- (b) if so, the details of the revenue generated from the said sector during the last three years, year-wise;
- (c) whether the Government is aware that there is lack of infrastructure to facilitate the IT&ITES industries in the country including in the Bengaluru region;
- (d) if so, whether the Government is taking any steps to encourage the said industries; and
- (e) if so, the steps taken by the Government in this regard?

## ANSWER

## MINISTER FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

(a)  and  (b):  As  per  the  National  Policy  on  Information  Technology  (NPIT),  it  is  envisaged  to increase  revenues  of  IT  and  ITES  Industry  to  USD  300  Billion  by  2020  including  exports  of USD 200 Billion. The total Revenue (Exports and Domestic) of Indian IT-ITES industry during the last three years is as under :

Total Revenue of Indian IT-ITES sector (Including Exports and Domestic)

| Year                   |   2012-13 |   2013-14 |   2014-15 |
|------------------------|-----------|-----------|-----------|
| Revenue in INR Crore   |    519330 |    642076 |    729432 |
| Revenue in US$ Billion |        96 |       106 |       119 |

Source : NASSCOM SR 2016

(c): The  Department  of  Commerce  (DoC),  Ministry  of  Commerce  &  Industry  has  notified 203 IT-ITES specific Special Economic Zones (SEZs) out of which, 22 IT-ITES SEZs are in Bengaluru region.  These IT-ITES SEZs are significantly contributing towards the growth of ITITES exports from the country.

Further,  Software  Technology  Parks  of  India  (STPI),  an  autonomous  society  under  the Department of Electronics & Information Technology (DeitY), Ministry of Communications & Information Technology is engaged in the promotion and development of IT-ITES.  STPI has set up  54  STPI  centres  across  the  country  including  Bengaluru,  Hubli,  Mangalore,  Manipal  and Mysore in the State of Karnataka. To promote investment in the IT-ITES/ Electronic Hardware Manufacturing  (EHM)  units, DeitY  had notified setting up of Information  Technology Investment Regions (ITIRs) near Bengaluru on 26.06.2013 and Hyderabad on 13.11.2013 after taking approval of Cabinet Committee on Economic Affairs (CCEA).  The ITIR near Bengaluru will be set-up over an area of 42.51 sq. kms. (approximately10, 500 acres) and is to be developed in 2 phases.

(d)  and  (e):  The  Government  extends  several  incentives  for  Information  Technology  Sector. Currently, the IT-ITES SEZ units are eligible for tax benefits as per Section 10AA of the Income Tax Act for a period of 15 years in a phased manner.  Under the Software Technology Parks (STP) scheme, which is administered by the STPI, IT-ITES units are eligible for various benefits such as Customs Duty exemption on imported goods, reimbursement of Central Sales Tax (CST) and  Excise  Duty  exemption  on  procurement  of  indigenously  manufactured  goods.    Further, DOC, through Marketing Development Assistance (MDA) and Market Access Initiatives (MAI) Scheme assists exporters especially Small & Medium Enterprises (SMEs) for export promotion activities abroad.

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