The contribution of information and communication technology (ICT) to output growth in India increased from 5.0 per cent in 1981-1990 to 13.2 per cent during 1992-2023, according to a recent RBI paper.
On average, the ICT sector’s productivity fared better than the non-ICT sector for the whole sample period, the paper noted.
Following the global trend, India is also experiencing rapid digitalisation, and the impact of digital goods and services on India’s economic growth has become more pronounced, especially after the pandemic.
The share of the ICT sector in the total economy Gross value added (GVA) increased over time.
Digital technologies let businesses innovate by streamlining operations and lowering expenses associated with communications with clients and suppliers.
“ICT, when used as an input in the production process, also improves productivity via deepening,” said the report.
Companies can reduce their ICT expenditures and associated costs like energy, labour and maintenance by switching from owning ICT assets to acquiring ICT services.
The economy’s overall productivity performance may eventually benefit from these savings as they improve resource allocation and increase efficiency, said the RBI paper.
Meanwhile, the enterprise ICT market in India is set to increase at a sound compound annual growth rate (CAGR) of 17.1 per cent, increasing from $161.3 billion in 2023 to $354.6 billion in 2028.
The revenue opportunity is driven by the ongoing digital transformation initiatives taken up by businesses and government, forecasts GlobalData, a leading data and analytics company. This is in line with the positive ICT investment sentiment seen among the enterprises in the country.
The BFSI sector to be the largest end-use vertical segment for the ICT market in India, in terms of revenue contribution, and will remain so over the forecast period. The segment is set to account for a 11.3 per cent share of the total cumulative revenue forecasted for 2023-2028.
Their sacrifice shining example of valour, commitment to one’s values: PM Modi's tribute to Sahibzades
Prime Minister Narendra Modi, on Wednesday, paid tributes to Sahibzades on the occasion of Veer Baal Diwas and prayed that they always "guide us towards building a more just and compassionate society".
Netanyahu warns Houthis as Israel reportedly mulls new airstrike
Israeli Prime Minister Benjamin Netanyahu warned that Houthi forces in Yemen would face consequences similar to those experienced by other anti-Israel groups.
Andhra CM Naidu meets PM Modi, seeks special financial assistance
Andhra Pradesh Chief Minister N. Chandrababu Naidu met Prime Minister Narendra Modi and some Central ministers including Amit Shah and Nirmala Sitharaman in Delhi on Wednesday, seeking special financial assistance from the Centre.
IMD and TU signs MoU for indigenous lightning detection system development
In a significant step towards enhancing India's capabilities in weather monitoring and research, a Memorandum of Understanding (MoU) was signed between the India Meteorological Department (IMD) and the Department of Physics, Tripura University.
Tripura Chief Minister hails Officers for promoting transparency in governance
Chief Minister Prof. Dr. Manik Saha today said that officers in the state government are playing a key role in making the administration corruption-free which is an example of Good Governance.
NEC Plenary to usher development for Tripura: CM
Tripura Chief Minister Prof. Dr. Manik Saha today said that the recently held Plenary Session of the North Eastern Council (NEC) will greatly benefit the state and other North Eastern states; as such meetings will bring more development works to this region.
Directorate of Revenue Intelligence seizes drug items worth Rs 56.525 Cr this December; 15 persons detained
In a major crackdown on the smuggling and trafficking of contraband narcotic drugs and psychotropic substances, the Directorate of Revenue Intelligence (DRI) carried out a focused operation in the month of December 2024 in the North Eastern Region.
CPI(M) opts for young leaders in Tripura, chooses 87 pc new faces in divisional committees
Around 87 per cent of new faces were elected as secretaries in the CPI(M)’s Divisional Committees in Tripura replacing old guards, a party leader said here on Tuesday.