The information technology industry of India has been attracting considerable amount of foreign direct investment in the recent years. Investments are being made in the four principal sectors of the Indian information technology industry - online businesses, information technology services, information technology based services and software merchandise. Newer investment opportunities are opening up every now and then in the Indian information technology scenario.
As per the findings of the NASSCOM-McKinsey report the Indian information technology is supposed to receive between 4 and 5 billion United States dollars by way of foreign direct investment in the year 2008.
There are however other ways in which foreign direct investment is being made in the information technology industry of India. A number of major information technology companies of the world have set up shop in India trying to recruit the skilled information technology professionals of India.
One of the major advantages of this method is that the Indian information technology professionals are more viable from the economic point of view.
Since they are at par with the international standards as far as skills are concerned it is pretty easy to extract good work out of them. This has however helped in the expansion of the job market in India as an increasing number of people are landing jobs with the international information technology companies and are living better lives.
Foreign direct investment in India's information technology industry has also been contributed to by the remarkable growth of the industry in the recent years.
The worth of the Indian information technology industry was 150 million United States dollars in the financial year 1991-92 and since then it has grown at an appreciable rate to be worth 5.7 billion US dollars in the 1999-2000 fiscal. The information technology has been among the best as far as rate of growth is concerned. This has lured the investors from all over the world.