India's IT and Electronics Industry driving economic growth and global leadership

Manjit Nayak  
Director-STPI (Kolkata), Govt. Of India

“Since the 1990s, the IT industry has blossomed into a global powerhouse. By the end of 2023, the total revenue generated by IT exports from India reached an impressive $194 billion, nearly doubling since 2016, highlighting the sector's robust growth. Despite various global challenges, the IT industry's contribution to India's GDP has risen significantly, from 1.2% in 1998 to 7.5% in 2023. This growth is not just about numbers; it has also created millions of jobs, transforming the country's economic landscape. The IT industry has become a cornerstone of the nation's economy, accounting for around 79% of total revenue through exports.


Turning our attention to the electronics industry, we see another area with tremendous growth potential. The electronics sector in India contributes about 3.4% to the country's GDP. The government has shown its commitment to this sector by pledging nearly $17 billion over the next six years through various incentive schemes. This support has already yielded impressive results, making India the second-largest mobile manufacturer, with nearly 200 units now producing mobiles and accessories. In 2014, only two companies were involved in mobile manufacturing, but now, the government's vision aims for a $400 billion turnover in the electronics sector by 2025. This ambitious plan includes setting up clusters for the entire value chain and employing over 10 million people directly and indirectly. Incentives like production-linked incentive schemes and the promotion of manufacturing electronic components and semiconductors are part of this vision.”