Although Indian IT could now take a year more to touch export revenues of $60 billion – the industry anticipated it could by 2010 – the long term scenario remains promising, trade body Nasscom reassures. If the Indian IT industry can capitalise on emerging opportunities, it can possibly block export revenues of $175 billion by 2020 from under $50 billion currently. Domestic revenues could bulge four times to $50 billion from just $12 billion in 2008. The numbers would inch up the industry’s contribution to annual GDP to 6 per cent from the current 5.5 per cent and its share of annual exports to 28 per cent by 2020 from about 19 per cent now.
In this process, the industry would also create 30 million direct and indirect urban employment. At the moment, the IT sector directly employs a little more than 2 million. However, here’s the caveat. India is likely to lose 10 per cent of its market share to other locations by 2020 if issues such as talent shortage and poor infrastructure are not addressed, Nasscom on Tuesday pointed out, basing its assumptions on a research conducted by McKinsey and Company.