Information technology industry

1. INFORMATION TECHNOLOGY INDUSTRY Shivani Sharma B.Com final

2. INTRODUTION and MEANING Information technology is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. Indian IT companies like Tata Consultancy Services, Wipro Technologies, Infosys, HCL Technologies etc are very successful companies. it also includes Information Technology Enabled Services like BPO,KPO etc. the three branches of IT sector are : Computer Technology Electronics Telecommunications

3. COMPUTER INDUSTRY It has emerged as one of the fastest growing industry if India. It includes two components, hardware refers to computers and software refers to programming. GROWTH OF COMPUTER INDUSTRY (rs. In crore) Component Production 1997-98 2010-11 Exports 1997-98 2010-11 Hardware Software 22,100 1,21,760 9,970 3,96,760 3,000 40,400 9,500 3,06,800 Total 32,070 5,18,520 12,500 3,47,200

4. FEATURES AND CAUSES OF GROWTH Export Oriented High Growth Rate Growth Rate of Hardware Number of Software companies Direction of Exports Top software companies Main customers Domestic market Public investment in human capital Reduction of custom duty Special economic zones Software parks Special efforts for computer security High quality free software Wide penetration of IT centers

5. ELECTRONICS INDUSTRY Electronic industry is ranked 26th in the world in terms of sales and 29th in the world in terms of production. It is growing at over 25% CAGR (compound annual growth rate) and is expected to be worth US $ 158 billion by 2015 . Electronics Production of Major Items ( rs. In crore) ITEMS 1997-1998 2009-2010 Industrial Electronics 3,150 13,630 Computers 28,00 14,430 Communication and Broadcasting Equipments 3,250 31,390

6. TELECOMMUNICATION INDUSTRY The first National Telecommunication Policy was announced in year 1994. at that time telephone density was one telephone for hundred people and in 2011 density went up to 76.86%. Telecommunication Regulation Authority of India was established in 1997 by an act amended in year 2000. In 2008 3G mobile service launched in India. In 2011 private sector accounted 86% and public sector accounted 14% of business. BSNL and MTNL are public sector companies and Air Tel, Idea, Reliance, Vodafone etc are private players in this industry.

7. NUMBER OF SUBSCRIBERS OF TELECOMMUNICATION (in Lakh) Year Total Subscribers 1996-97 1,44.34 2000-01 3,57 2008-09 4,298 2009-10 6,213 2010-11 8,463 Dec. 2011 9,266

8. RECENT POLICIES IN IT SECTOR All capital goods and inputs required in manufacture of IT products are exempted from excise duty. Expenditure incurred on R $ D in IT sector is allowed weighted deduction of 200% while computing taxable profit. IT Venture Capital Fund worth rs. 100 crore was set up for technology upgradation. To promote IT industry government has earmarked 1 to 3% budget of every ministry for IT application. Computers have been exempted from excise duty. Second hand capital goods are permitted to get imported.

9. RECENT POLICIES IN IT SECTOR IT Act 2000 is enacted to provide legal recognition to electronic records and to prevent computer crimes. IT (Amendment ) Act 2008 was enacted to strengthen legislation pertaining to information security and to check new forms of cyber crimes. The department of IT is setting up Nano Electronic Centers. TRAI was established to regulate telecommunication sector.

10. CHALLENGES IN IT INDUSTRY IN INDIA Increasing foreign competition. Increasing cyber crimes Fast changing technology Withdrawal of tax concession Shortage of high quality manpower Effects of recession in developed nations

11. CONCLUSION IT industry has been emerging India specially in IT enabled services and software. The I ndian software and services have established credentials in providing high quality solutions to the world. In the year 2010-11 Indian IT industry controlled more than half of global business. IT industry is  providing direct employment to about 2.8 million, and indirectly employing 8.9 million people.

12. THANK YOU