Indian IT-ITeS Industry

Indian IT-ITeS Industry-

 

A Success Saga

 

The liberalization of Indian economic policy, de-regulation of key sectors and progressive moves towards further integrating India with the global economy has been a key driver of increased IT adoption in the country 

 

2012 will be remembered as a landmark year in the history of Indian Information Technology- Information Technology Enabled Services [IT-ITeS] industry, as aggregate industrial revenue crossed USD 100 billion dollars with a y-o-y growth of 14 percent. With USD 69 billion, exports [excluding hardware] contributing the lion’s share of 78 percent, accounted for the growth of +16 percent over 2011. The domestic revenue [including hardware] is expected to account for USD 32 billion, a growth of +9 percent over 2011. There is no doubt that IT-ITeS industry has emerged as one of the most dynamic sectors in India’s economic boom and is responsible for the global recognition of India as a “soft” power. The consistent growth of the IT segment has created phenomenal wealth, employment, exports and a significantly large reservoir of highly competent technocrats and knowledge workers.  

Majority of the Fortune 500 and Global 2000 corporations are sourcing IT/ITeS from India. Further most of Capability Maturity Model (SEI-CMM) Level 5 firms are based in India. On the plus side, the Indian IT-ITeS industry has also moved up the value chain of global perception. India is delivering several mission critical services to clients globally. Indian companies have set up delivery centres across the world and are actually providing services from different regions. 340 delivery centres in 184 cities across 48 countries in 2007 have now increased to over 560 centres in over 200 cities across 70 countries by 2012. India is fundamentally advantaged and uniquely positioned to sustain its global leadership position, grow its offshore IT-ITeS industries at an annual rate of 13-14 percent, sustain nearly 10 million direct jobs and generate export revenues of about USD 175 billion by 2020. This represents an opportunity capable of catapulting India into a higher growth orbit.  
 

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Financing Agriculture : Some Issues (India)

Financing Agriculture : Some Issues (India)
 

Small and marginal farmers should be helped to liberate themselves from the stranglehold of moneylender and should be given priority for accessing low cost credit.

Post 1990 India has emerged as one of the world’s fastest growing economies. Its GDP growth rate of about 9% in the last few years is historically unparalleled except by our neighbour China. With rapid economic and social growth, however, new challenges emerge as also new growth strategies. For sustainable economic development, the crucial agricultural sector has to grow at a consistent 4% growth rate to GDP. Given the fact that 60% of our farming is monsoon dependent, ensuring consistent growth in food production is a major challenge, especially in wake of global warming and consequent climatic changes.

Credit has a very important role to play in supporting agricultural production and investment activities. The total credit flow to agriculture during the 10th Five Year Plan was expected to grow at a compound annual growth rate (CAGR) of 26.38%, as against the CAGR of 18.63% achieved during the 9th Five Year Plan. However, although the total agricultural credit has increased during the last six years, there are serious quantitative as well as qualitative concerns. The poor outreach of the formal institutional credit structure is a serious issue that needs to be corrected expeditiously. The findings of the National Sample Survey Organisation (NSSO) 59th Round (2003), reveal that only 27% of the total number of cultivator households received credit from formal sources while 22% received credit from informal sources. The remaining households, comprising mainly small and marginal farmers, had no credit outstanding. Comprehensive measures aimed at financial inclusion in terms of innovative products and services to increase access to financial services and institutional credit, are required. Other issues such as ensuring credit flow to tenant farmers, oral lessees and women cultivators, complex documentation processes, high transaction costs, lack of availability of quality inputs across all regions, inadequate and ineffective risk mitigation arrangements, poor extension services, weak marketing links and sectoral and regional issues in credit are also required to be addressed expeditiously. The lack of rural credit bureaus also delays the process of sanction of agricultural loans as there is need to reduce loan risk and documentation procedures.

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