IT sector's contribution to GDP rises to 5.2%

The information technology (IT) industry has increased its contribution to the country's GDP from 1.2 per cent in 1997-98 to 5.2 per cent in 2006-07, according to a Nasscom-Deloitte study.

The report, titled Indian IT Industry: Impacting the Economy and Society, further says that export earnings in 2007-08 will hit $40 billion, a growth of 36 per cent.  Meanwhile, direct employment is expected to be 2 million in 2007-08, growing at a CAGR of 26 per cent in the last decade.

The report, while bringing forth the contribution of the IT/ITeS sector, points out that the industry has been the trigger for many 'firsts' and has contributed not only to unleashing the hitherto untapped entrepreneurial potential of the middle class but also taking Indian excellence to the global market.