Indias last three budgets, which can be seen as statement of economic policy, have focused on two major principles: to portray India as an attractive destination for capital, and increase in public spending to raise returns and attract private investors.
Uncertainty has descended upon the $150-billion Indian outsourcing industry in anticipation of the protectionist regime under President Trump. Protectionism has been a popular election rhetoric across nations, and more so in recent times. And the voting masses seem to like it. Will Trumps campaign cry for protectionism cross the boundaries of poetic drama and come alive as laws?
- India is one of the fastest-growing IT services markets in the world. It is also the world’s largest sourcing destination, accounting for approximately 52% of the $130 billion market.
- The country’s cost competitiveness in providing IT services continues to be its USP in the global sourcing market.
- India has the potential to build a $100 billion software product industry by 2025, according to Indian Software Product Industry Roundtable (iSPIRT).
- The IT-BPM sector in India grew at a compound annual growth rate (CAGR) of 25% over 2000-2013, which is 3-4 times higher than the global IT-BPM spend, and is estimated to expand at a CAGR of 9.5% to $300 billion by 2020.
- Indian insurance companies also plan to spend $2.01 billion on IT products and services in 2014, a 12% rise over 2013.