» Business » Indian's IT sector growth may fall to 5-year low

Indian's IT sector growth may fall to 5-year low

Source: PTI
Last updated on: June 22, 2009 20:05 IST
Get Rediff News in your Inbox:
The Indian IT and IT-enabled services industry is expected to grow at 10.8 per cent in 2009, the lowest in the last five years, due to the global economic meltdown, a report said.

But in next four years, it would grow at 13.9 per cent to touch revenue of $110 billion, the report by analyst firm IDC India has said. "In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8 per cent, which is the lowest in the last five years.

"Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over $110 billion in 2013," Kapil Dev, country manager, IDC India Singh said in the report.

The total revenue for the Indian IT industry in 2008 stood at over $57 billion in 2008. "The ongoing global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013," Kapil Dev Singh said.

The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore (Rs 2063.98 billion) by 2013 from Rs 99,254 crore (Rs 992.54 billion) in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.

"The growth will be led by spending by the government, manufacturing, telecom, pharmaceutical, utility and healthcare sectors. Retail, IT/ITeS along with banking and financial services would also continue to spend on IT," Singh said.

The export of IT/ITeS are expected to grow 12.7 per cent to touch Rs 3,28,081 crore (Rs 3280.81 billion) by 2013 against Rs 1,80,064 crore (Rs 1800.64 billion) in 2008, Singh said.

IDC's study pegs the total IT industry revenue to touch Rs 3,09,573 crore (Rs 3095.73 billion) in 2009. Of this, while the domestic IT/ITeS market accounts for Rs 1,09,406 crore (Rs 1094.06 billion), exports could touch Rs 2,00,168 crore (Rs 2001.68 billion), the study said.

"The hardware market will remain under pressure through the year, while the software and IT services markets will also be affected, though to a comparatively lesser extent," Singh said.

"The share of IT/ITeS in the Indian domestic market is expected to rise from 31.7 per cent to 41.9 per cent in 2013, signaling the increasing focus of enterprises to 'leverage' the capacities built-up," Singh said.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2021 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Moneywiz Live!