FDI in technology sector saw a 336% rise in Apr-Sep 2020: Economic Survey

The technology providers sector helped obtain a large bump up in the influx of overseas direct funding into India, the Economic Survey 2020-21 said.

FDI fairness inflows between April-September 2020 obtained a large push from the technology sector (Computer Software & Hardware sector) price $17.55 billion, a 336% enhance over the corresponding interval final yr.

The survey said that software program exports, with a share of 49.3% in complete providers exports remained resilient with larger demand for digital assist, cloud providers and infrastructure modernisation catering to the brand new challenges posed by the pandemic.

It mentioned, “A majority of software companies which had reported negative revenue growth in Q1 of FY2020-21, have shown signs of a rebound in Q2 with positive sequential growth on account of the increased revenue from their financial, banking and insurance, retail, life sciences and health care units.”

Computer software program and {hardware} as a sector accounted for over 74% of complete FDI inflows in the broader providers sector in 2019-20. Revenue from IT-BPM Services is estimated at $174 billion for 2019-20 in comparison with $161.8 billion in 2018-19. A big a part of the IT-BPM business continues to be export-driven with export revenues totalling 84% or $146 billion.

The United States continues to be the largest recipient of Indian technology exports. In 2019-20, the US was the highest beneficiary accounting for 62% of the whole IT-BPM exports (excluding {hardware}) price $91 billion. The UK was the second-largest recipient accounting for 17% exports price $24.7 billion. Europe (excluding the UK) and Asia-Pacific accounted for 11.4% and seven.6% of the export earnings of India, respectively.

The IT business has additionally seen vital development in the final decade, the survey identified. In the ten years, the Indian IT business comprising bigger service suppliers like Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Tech Mahindra grew by 102% reaching $190.5 billion in revenues in 2019-20. The business additionally added 1.8 million staff, up 70% over the past 10 years.

In the final and present yr, the technology sector saw structural reforms together with Relaxation of Other Service Provider (OSP) Terms & Conditions, and Consumer Protection (E-commerce) Rules, 2020.

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