Home / Industry / Infotech /  ‘1% rise in licensed software can add $1.3 bn to Indian economy’

Bangalore: The Indian economy can gain an additional $1.3 billion for every 1% increase in the use of properly licensed software, according to a recent study by France’s premier business school INSEAD and the Software Alliance (BSA).

A 1% rise in the use of licensed software would generate almost US$1.3 billion in national production for India, compared with $554 million from a similar increase in pirated software. By implication, properly licensed software would deliver $739 million in additional economic value, the study titled Competitive Advantage: The Economic Impact of Properly Licensed Software and released in May this year, said.

“This study confirms that licensed software is not just good for firms—it is an important driver of national economic growth. Government, law enforcement and industry in India should take every opportunity to reap these potential gains by reducing piracy and promoting use of properly licensed software," Yolynd Lobo, BSA’s director, India, said in a statement.

Increasing licensed software usage globally by 1% would generate an estimated $73 billion for the world economy, compared with $20 billion from pirated software—a difference of $53 billion, the study said.

The study also found that each additional dollar invested in properly licensed software has an estimated return-on-investment of $75, nearly four times the return generated by investing in pirated software.

India, which employs nearly three million engineers in its $108 billion information-technology industry continues to be among the top nations facing software piracy. The value of pirated software in India was $2.93 billion in 2011, a piracy rate of 63%, according to the Software Alliance.

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