Growth of India's IT sector, Government Initiates taken, Impact of Monetary policy and Current challenges, impacts, and recovery in COVID-19.

2. Outsourcing of work
to low-cost and
skilled talent pool in
India
Increased
investment in R&D
and infrastructure.
product
development
destination
Firms grew in size
and started offering
complex services
Western firms set up
a number of captives
in India
Firms in India
became MNCs
India’s IT sector is at
an inflection point.
The US $167 billion
Indian IT industry
employs nearly 4
million people
Third rank among
the global startup
ecosystem
Grow at US$350
billion by 2025
Pre-1995
1995-2000
2000-05
2005-2016
GROWTH OF INDIA’S IT
SECTOR
2017-

3.  Market size:
USD28 Bn
 87% of
revenue
comes from
Exports
 Market size:
USD27 billion
 >84% of
revenue
comes from
Exports
 Market size:
USD13.3
billion
 Domestic
market
accounts for a
significant
share.
 Market Size:
USD75 Bn
 >81% of
revenue
comes from
Exports

4. SHARE OF IT SECTOR IN GDP

5. GOVERNMENT INITIATIVES
01
Affordable broadband connectivity of 2 Mbps to 20 Mbps for
all households
BHARATNET
02
UPI / BHIM / USSD / AADHAR PAY
DIGITAL PAYMENT
03
Undertaking software development and IT enabled services
SOFTWARE TECHNOLOGY PARK SCHEME
04
Connect all the 2,50,000 Gram panchayats and provide 100
Mbps connectivity to all gram panchayats
NATIONAL OPTICAL FIBRE NETWORK

6. IMPACT OF
MONETARY
POLICY ON IT
INDUSTRY
01 Increase in Bank rate would lead to higher cost of Borrowing
and Inflation.
02
Impact of rupee fluctuations on exports and foreign exchange
earnings.
03
Measures taken by RBI to inject liquidity in the system by
reduction in SLR and Open market Operations(OMO) for
purchase of govt securities positively affects IT industry.
04
Reduction in interest rates benefits IT sector in a positive
way by reducing their cost of borrowing.
Reduction in Margin Requirement for working capital
facilities, positively impacts IT sector by providing higher
working capital.
05

7. Impact of Covid on IT/ITES Industry
• Major economies of the world
are experiencing negative
growth.
• Infosys clients in US are filing
for bankruptcy.
• Problems of IT/ITES industry in
India, which results in dip of
revenue generation-
• Project termination
• Deferrals
• Bankruptcy filings
• Pricing pressure
• Report (during COVID)
from Gartner revealed
that India’s IT & ITES services
industry will witness a fall of
8% in 2020

8. CURRENT CHALLENGES
The Indian IT sector
gets most of its revenue
from the US, UK and
European markets.
The outsourcing
dependent countries
are trying to control the
IT service imports.
Top software exporters
– TCS, Infosys, and HCL
Technologies will be
impacted
IT companies could
feel the heat of
pricing pressure, and
revenue loss.

9. Recovery During Pandemic
Companies are adopting work from remote
location, thereby requiring more cloud services
and IT applications.​
Due to the coronavirus, a lot of opportunities
opened up in the IT industry.
New business opportunities.
Increased demand for social media platforms.

10. THANK YOU
VIKAS DAGAR 20DM244
YASHI AGARWAL 20DM252
YOGESH SHARMA 20DM254
RAHUL PRUTHI 20DM268
SWASTI JAIN 20DM290
MOHIT JAIN 20DM294