Information Technology

The vision of Information Technology(IT) policy is to use IT as a tool for raising the living standards of the common man and enriching their lives. Though, urban India has a high internet density, the government also wants PC and Internet penetration in the rural India.

In Information technology (IT), India has built up valuable brand equity in the global markets. In IT-enabled services (ITES), India has emerged as the most preferred destination for business process outsourcing (BPO), a key driver of growth for the software industry and the services sector. India's most prized resource in today's knowledge economy is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the U.S.

According the data from ministry of communication and information technology, the ITES-BPO industry has grown by about 54 per cent with export earnings of US$ 3.6 billion during 2003-04. Output of the Indian electronics and IT industry is estimated to have grown by 18.2 per cent to Rs. 1,14,650 crore in 2003-04. 

All the sub-sectors of the non-software component of electronic and IT industry grew at over 8 per cent in 2003-04, but this was far below the rate of growth of software services. Overall, after declining precipitously from 61.4 per cent in 1998-99 to 40.9 percent in 2001-02, the share of hardware in this important industry declined only marginally to 38.2 percent in the two subsequent years.