Photo: Mint (Mint)
Photo: Mint

Indian technology industry likely to grow to `1.8 trillion by 2016

Contribution of the Internet economy to the country’s GDP is expected to increase from 4.1% in 2010 to 5.6% in 2016

With the increasing technology requirements of Indian businesses and government along with increased consumerization, the Indian technology industry is expected to grow to 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.

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.