Indian IT sector spending to touch USD 37.6 bn by 2013: Study

Last Updated: Monday, October 12, 2009 - 22:14

New Delhi: India`s IT spend is expected to touch Rs 1,64,300 crore (USD 37.6 billion), accounting for 2.3 per cent of the GDP by 2013, a study on Monday said.

"Spending on IT will reach Rs 989 billion in 2009, and is
expected to grow to Rs 1,643 billion by 2013 for a compounded
rate of growth of 11.8 per cent. By 2013, IT as a percentage
of GDP will increase from 1.8 per cent to 2.3 per cent," a
study by global research firm IDC and Microsoft said.

The study noted that the spending will create nearly
7,000 new businesses--mainly small and locally-owned--and add
3.24 lakh jobs between 2009 and 2013.

"Over the past 20 years, we`ve seen transformative power
in how investments in IT innovations foster economic growth.

Continued innovation and investment in information technology
will help jump-start recovery from the current recession and
will significantly contribute to the growth of employment and
new businesses," Information Technology and Innovation
Foundation founder and president Robert D Atkinson said.

The growth will be driven by the software sector that
accounts for 45 per cent of employment and 12 per cent of the
total IT spend, it added.

The research from 52 countries, including India,
forecasts the creation of 5.8 million new jobs worldwide and
75,000 new businesses over the next four years.

"In this fundamental economic reset, innovative
technologies will play a vital role in driving productivity
gains and enabling the creation of new local businesses and
highly skilled jobs that fuel economic recovery and support
sustainable economic growth," Microsoft Chief Executive
Officer Steve Ballmer said.

Bureau Report



First Published: Monday, October 12, 2009 - 22:14
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