Contribution of Information Technology and Growth of Indian Economy

Information technology is an important emerging sector of the Indian economy. The Government of India has identified IT industry as one of the major industries in India and it plays an important role in achieving the policy objectives like economic development. The IT industry has mellowed over the years andhas emerged to be a chief contributor to the globaleconomic growth. The IT sector, constitutedby the software and services, Information Technology Enabled Services (ITES) and the hardware segments, hasbeen on a gradual growth trajectory with a steady rise in revenues as witnessed in the past few years.The size of this sector has increased at a rate of 35% per year during the last 10 years. The share of information technology industry is 7 percent of gross domestic product (GDP) in Indian economy according to NASSCOM (www.imdr.edu; www.nasscom.org.). The prime aim of this paper is to analyze the growth and performance of information technology industry in India. This paper examines the question: How information technology contributes to India’s economic development in a holistic and broader way