The Indian IT industry will grow to Rs 2,47,000 crore ($55 billion) by the end of calender year 2008 from Rs 87,000 crore in 2003, according to a latest study.
"The Indian IT industry will witness a compound annual growth rate of 23.1 per cent between 2003 and 2008 with exports growing 25.3 per cent and domestic market 18.5 per cent," the study by market research firm IDC said.
In 2003, the Indian IT industry grew 21 per cent at Rs 87,000 crore ($19.5 billion) from Rs 72,000 crore in 2002, and in 2004 growth will be 26 per cent with IteS expected to log 51 per cent growth.
"The higher growth in exports between 2003 and 2008 will be contributed primarily by the business process outsourcing or IT-enabled Services which is expected to grow at a high compound annual growth rate of 36 per cent.
"IT services export is expected to grow at 19 per cent during the same period," Kapil Dev Singh, country manager, IDC (India) said while presenting the study during 'Directions 2005'.
IDC said the domestic market has revived with 17 per cent growth in 2003 after seeing the lowest growth rate of six per cent in 2002 in the last 15 years. "This growth rate has been made possible on the back of strong global economic recovery. The other pluses have been 8.2 per cent GDP growth and rising corporate profits," he said.
The growth in 2003 makes India the fastest growing and fourth largest domestic market in the Asia-Pacific region.
"The growth trend in domestic IT market is going to peak in 2005 at 21 per cent with all three components -- hardware, software and services -- expected to grow at a decent pace," Singh said.