Domestic IT biz to reach Rs 1.75 lakh crore by 2016

India’s domestic information technology (IT) market is expected to touch the Rs 1.75 lakh crore mark by 2016, helped by rise in IT services and software segments, a report by Boston Consulting Group (BSG) said.

India’s domestic information technology (IT) market is expected to touch the Rs 1.75 lakh crore mark by 2016, helped by rise in IT services and software segments, a report by Boston Consulting Group (BSG) said.

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“The domestic IT industry is expected to grow at 12% over next 4 years, reaching a size of Rs 1.75 lakh crore by 2016, driven primarily by the services and software segments,” the BCG-CII report added.

According to the report on IT enablement of Indian business, the domestic IT sector was worth Rs 99,700 crore in 2011 with IT services contributing the largest share at Rs 49,400 crore followed by hardware (Rs 32,500 crore) and software services (Rs 17,800 crore).

The report pegs IT services sector to grow at 14% and touch Rs 96,600 crore by 2016 followed by hardware, that is pegged to grow at 6% to Rs 44,400 crore.

Microsoft Corporation India chairman Bhaskar Pramanik said IT industry is expected to touch $100 billion (Rs 5.4lakh crore) in FY 2012-13, which is approximately 7.5% of GDP.