With the increasing technology requirements of Indian businesses and government along with increased consumerization, the Indian technology industry is expected to grow to Rs.1.8 trillion by 2016, a growth of 12% over 2012, said a report released on Monday by the Boston Consulting Group and the Confederation of Indian Industry.
Rs.11 trillion, driven largely by the country’s demographic dividend. Also, the number of billion-dollar Indian companies will increase from 141 in fiscal year 2010 to more than 700 by 2020, and these firms will require extensive use of technology to remain competitive.
Currently, India’s technology spends as a percentage of GDP is less than 1% against the global average of 2.5%. The report also projects that the increased use of technology will also boost labour productivity and make businesses more efficient. India’s per-capita labour productivity was $9,310 in 2011, compared with $69,900 in the UK and $96,000 in the US.