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ESR. Indian economy has grown in recent times at a very fast pace and IT has been
an important industry that has taken India into the global arena. ...
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Submitted by rajbirsingharora on February 24, 2008
Category: Miscellaneous
Words: 1117 | Pages: 5
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Indian economy has grown in recent times at a very fast pace and IT has been an important industry that has taken India into the global arena. There is no doubt that in recent times, information technology has emerged as the most fundamental strategic tool for an organization. It has influenced every aspect of commercial enterprise—its structure, its products and services, its markets and processes. "However, in the beginning, I would like to dwell upon the strategic role of IT in building a nation." Information technology has been contributing significantly to productivity and growth in the global economy. A 2001 study of major technological revolutions over the last three centuries by the IMF (International Monetary Fund) has revealed that IT enhanced the growth rate of the United States economy by 1.8 percent per annum between 1995 and 2000. "During the same period, IT contributed to improvement in labour productivity by 1.6 percent annually. The IMF study states that even though the IT spending environment has weakened in the short term, the benefit of IT revolution to the global economy will continue if not accelerate in the long term.
The Indian IT industry was $ 16.5 billion in 2002-03. It constitutes 3.2 percent of the Indian GDP (gross domestic product). "While the size is attractive, it is significantly short of our potential. This has brought in precious foreign currency and developed the local economies of the places where IT companies are situated. With the emergence of IT- enabled services (ITES) industry, a new avenue of employment has been opened up for graduates. "This has contributed to mitigating the unemployment problem as well. In the next five years, the IT exports industry has the potential to grow to over $50 billion, contributing to 35 percent of India's exports and nearly 7 percent of our GDP. "Often when one speaks about Indian IT, the discussion tends to begin and end with software and services exports. The latent potential of...
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