IT/ITES industry’s contribution to country’s GDP has increased from a share of 1.2 per cent in 1997-98 to about 5.2 per cent in 2006-07, says new Nasscom study.

The key findings of Nasscom—Deloitte Study On ‘Indian IT Industry: Impacting the Economy & Society, released here on Wednesday, says that both IT/ITES contributed $40 billion in 2007-08 to country’s foreign exchange reserve and its direct employment has grown at a compounding rate of 26 per cent in the last decade. “IT & BPO now is largest employer in organised private sector of the country,” it said. The research, conducted jointly by Nasscom and Deloitte, has provided some key insights on how the IT industry has touched the lives of wider segments of society, to be released on Friday.

The report said that IT industry has contributed to unleashing hitherto untapped entrepreneurial potential of the middle class Indian. The industry has also created indirect employment at the rate of 4 additional jobs for every one job created in the sector.