India facing stiff competition from China, Brazil, Russia in ICT: Economic Survey
The Information and Communications Technology (ICT) share in China’s service exports grew from 22% to 40% in 2006-2016, while India’s contribution fell to 67% from 68%.business Updated: Jan 29, 2018 16:13 IST
The share of information and communication technology (ICT) in India’s services exports “declined marginally” between 2006 and 2016, contrary to the trend in nations such as China, Brazil, Russia and the Philippines, indicating rising competition for India from them, the Economic Survey said Monday.
The Economic Survey, tabled in Parliament, cited World Bank database as on January 19, 2018, to say the ICT accounted for 67% of India’s services exports in 2016, compared with 68% in 2006.
“The share of ICT in total services exports for India declined marginally during the decade (2006-2016), while the ICT share in total services exports has increased in economies like China, Brazil, Russia, Philippines, Israel and Ukraine...,” it said.
This indicated “increasing competition” for India from these countries, it added.
ICT share in China’s service exports grew from 22% to 40% in 2006-2016, while Brazil saw this contribution increase from 43% to 55%, during this period.
Referring to the RBI data, the survey said “software exports registered a growth of (-)0.7% in 2016-17”.
However, during the first half of the financial year 2017-18, it grew by 2.3%, the survey said taking note of growth in “software returning to positive territory”.
While the prospects for India’s overall service sector looks “bright” on the back of good performance of sub-sectors like tourism, aviation, and telecom, the “downward risk...lies in the external environment for software and business services”, it cautioned.
The US, the UK and the European Union account for around 90% of India’s total IT & IT enabled services exports.
“While there are new challenges surfacing in these traditional geographies, demand from APAC (Asia Pacific), Latin America and Middle East Asia is growing and new opportunities are emerging for expanding in continental Europe, Japan, China and Africa,” it said.
Offering a snapshot of the country’s IT-BPM sector, it said the industry employed nearly 3.9 million people in 2016- 17, adding about 1.73 lakh people over 2015-16.
The industry comprises over 16,000 firms that offer complete range of services, and over 4,750 start-ups, it added.
First Published: Jan 29, 2018 16:12 IST