Question

what role does the IT sector play in the Indian economy?

Answer 1

Information technology (IT) is playing a crucial role in contemporary society. It has transformed the whole world into a global village with a global economy, which is increasingly dependent on the creative management and distribution of information. Globalization of world economies has greatly enhanced the values of information to business organizations and has offered new business opportunities.

Answer 2

The Information Technology industry in India has seen booming growth in recent times. From a GDP contribution of 1.2% in 1998, it had shot up to 7.7% in 2017. In the last two years, the growth has been good, though not phenomenal like the earlier decades. The United States is India’s biggest customer, accounting for two-thirds of India’s information technology services exports.

Information technology in India has two major sectors – the IT services and Business Process Outsourcing. The major IT hubs are in Bengaluru, Hyderabad, Chandigarh, Kolkata, Pune and Chennai.