IT-industry

Over the past decade, the information technology industry has become one of the fastest growing industries in India. Strong demand over the past few years has placed India amongst the fastest growing IT markets in the Asia-Pacific region. It is expected that the contribution of IT and IT Enabled Services to the GDP will rise to 7 per cent by 2007-2008 against 4.8 per cent by 2005-2006. Indian IT companies are expanding their services, enabling customers to deepen their offshore engagements. The shift from low end business processes to higher value, knowledge based processes are having a positive impact on the overall industry growth.

The advantages that India offers in this industry:

• proficiency in English language
• Multi-country service delivery capabilities
• Cost advantage
• Government support and conducive policies
• BPO and call centre advantage
• Skilled manpower base
• Indian domestic market growth
• Great history in software development
• Process quality focus

Foreign Direct Investments:
FDI up to 100 % is permitted to e-commerce activities, subject to the condition that such companies would divest 26 % of their equity in favor of the Indian public in five years, if these companies are listed in other parts of the world. Such companies would engage only in business to business e-commerce and not in retail trading, inter alia, implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well.

Source: Ministry of External Affairs: INDIA , Dynamic Business Partner: Investor Friendly Destination