Geo services log $3bn sales, 1.35 lakh jobs in India in 2011
New Delhi: Geographic mapping and location-based services (geo services) generated USD three billion in revenue and created 1.35 lakh jobs in 2011 in the country, a study by Google has said.
According to the Boston Consulting Group (BCG) report commissioned by Google, the impact of geo services industry is valued at approximately 15 times of the current size.
"In India, geo services help Indian businesses drive USD 40-45 billion in revenue, save USD 70-75 billion in costs and affect 8-9 million jobs in India," it said.
The Indian geo services industry is comprised of companies that process location data, produce geo-enabled software, and expert industries that use geospatial data to generate insights.
The report also found that Indian consumers are also willing to spend USD 1.5-2 billion more than they currently do for geospatial services like online maps, navigation systems and local searches.
"Geo services helped generate USD 2 billion in revenue within the Indian accommodation and food services industry alone. Users benefit as it makes it easier for them to find the information on local offerings and creating valuable efficiencies in their day-to-day lives," Google India Head Product Lalitesh Katragadda said.
Geo services like Google Maps are helping to grow the Indian economy by enabling job opportunities, and paving the way towards future innovation, he added.
"To enable continued growth, governments, companies, researchers and consumers all need to encourage mapping innovations and investments in India," Katragadda said.
A variety of other industries like transportation use geo services for making their businesses more efficient and productive.
"Currently, geo services represent 0.2 percent of India's GDP and affect 2 percent of the national workforce. However, there is tremendous room to grow this industry and create a lasting source of competitive advantage for India," Prashant Agrawal, one of the BCG consultants who worked on the report, said.
To ensure that geo services continue to be a valuable driver of the Indian economy, there is a need to invest in it through support of open data policies, product innovation, better satellite technology, and pushing for more geography education programs in schools, the report said.