Demand from South America, Asia and Africa is expected to drive growth for exports in IT/ITeS sector in the coming years, according to the Economic Survey 2019.
For the IT and ITeS sector, the US, UK and Europe accounts for about 90 percent of total exports. However in the recent times these geographies have posed challenges including visa issues in the US, Brexit in UK and European Union and other macro-economic volatility.
At the same time, demand from Asia pacific countries, Latin America and Middle East Asia is growing and new opportunities are emerging for expanding in continental Europe, Japan, China and Africa.
To tap the growing opportunity, the Survey said, efforts are being made to further strengthen existing markets, and simultaneously diversify and increase presence in the new and emerging markets in Europe (besides UK which is a mature market), Africa, South America, Israel, Australia, China and Japan through market development and industry re-positioning initiative.
India’s exports accounted for about $136 billion for FY2019, up 8 percent from $126 billion in FY18. India’s IT-BPM revenue for 2018-19 is $181 billion, up 8.3 percent from $167 billion in 2017-18.
IT services account for about 52 percent of the total revenue, followed by BPM with share of around 20 per cent. Software products and engineering services together accounted for around 19 per cent share whereas hardware accounts for 10 per cent, according to the report. E-commerce market is estimated at $43 billion for FY 2018-19, at the growth rate of 12 per cent.
The survey said that the government’s Digital India Initiative along with new and emerging technologies are new opportunities for revenue and job creation in IT and electronics and also new sectors of the economy such as transport, health, power, agriculture, and tourism.