The size of India's IT industry has grown significantly over the years. The size of this sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars between 1990-1991 and 2006-2007. The growth of the IT industry has been very high in the last few years. The size of the Information Technology industry of India was 5.7 billion US Dollars in 1999-2000. After the turn of the century the industry experienced exponential growth to reach the 50 billion mark by 2006-2007.
The size of the IT industry grew consistently during the period - 1995-2000
1995-1996 - 1224 million US Dollars
1996-1997 - 1755 million US Dollars
1997-1998 - 2670 million US Dollars
1998-1999 - 3900 million US Dollars
1999- 2000 - 5700 million US Dollars
2000-2001 - 8750 million US Dollars
According to the NASSCOM- McKinsey report on the IT industry of India, the projected revenue of the IT industry of India for the year 2008 is 87 billion US Dollars. The projected exports or the year 2008, accord to this report, is 50 billion US Dollars.
Some of the important aspects of the NASSCOM- McKinsey report related to the size of India's IT industry are -
There is potential of 2.2 million people being employed in the IT industry of India by the end of 2008.
Contribution of software and services to the total GDP of India will be more than 7.5%.
FDI (Foreign Direct Investment) of 4.5 billion US Dollars expected in the IT industry by the end of 2008.
35% of total exports from India will be from IT exports.
225 billion US Dollars worth of market capitalization from IT shares.
Softwares and services are exported to bout 95 companies from India. North America accounts for 61% of the software exports from India.
The projections about the size of India's IT industry present a very optimistic picture. The industry is expected to grow to double its current size by the year 2012. India's IT industry is expected to grow at an annual average rate of 18% in the next five years. The industry is also expected to cross the 100 billion US Dollar mark by 2011. One of the major areas of growth for the IT industry of India is by tapping the potential in the domestic market. The IT industry of India is largely dependant on the export market. Penetrating more into the domestic market would create further opportunities of growth for the IT industry.