IT-BPM exports to touch $136b in FY19: Economic Survey

The Economic survey estimates that IT-BPM exports are estimated to touch $136 billion for 2018-19, up from $126 billion in 2017-18. The survey shows that IT-BPM revenue is estimated to touch $181 billion in 2018-19, up from $167 billion in 2017-18.

The E-commerce market is estimated to grow to $43 billion in 2018-19, at the growth rate of 12%, the survey states.

IT services constitute the largest segment with a share of around 52%, followed by Business Process Management with a share of around 20% while software products and engineering services accounted for around 19%, with hardware accounting for 10%.

It talks about the importance of the (IT/ ITeS) industry and its role in positioning the country as a preferred investment destination among global investors and creating huge job opportunities and pointed out that the USA, UK and EU account for about 90% of the total IT-ITeS exports. However, there are new challenges surfacing in these traditional geographies.

Demand from APAC, Latin America and Middle East Asia is growing and new opportunities are emerging for expanding in continental Europe, Japan, China and Africa. The survey said that efforts are being made to strengthen existing markets, and simultaneously diversify and increase presence in the new and emerging markets.

The survey states that the digital economy has received a huge boost through various initiatives such as Digital India, common service centres, BPO promotion schemes, digital payments, electronic manufacturing, Digital Saksharta Abhiyaan, e-commerce, GST network, Make in India, Start-up India, e-health, Smart Cities, and e-agriculture market place/ digital mandis.

"These initiatives coupled with new and emerging technologies are enhancing the digital economy of the country and are creating IT and electronics led new opportunities for revenue and job creation in both traditional as well as new sectors of the economy such as transport, health, power, agriculture, and tourism."

The economic survey also talks in length about the National Policy on Electronics. "That includes creating eco-system for a globally competitive ESDM sector; promotion of electronic components manufacturing ecosystem; special package of incentives for mega projects; encouraging industry-led R&D and innovation and promoting start-up eco-system in all sub-sectors of electronics, including emerging technology areas suchas 5G, IoT/ Sensors, artificial intelligence (AI), machine learning, augmented reality (AR) and virtual reality (VR), drones, robotics, additive manufacturing, gaming and entertainment, photonics, nano-based
devices, medical electronics, defence and strategic electronics, automotive electronics, cyber security, power electronics and automation."