Piyush Goyal held discussions with senior IT leaders, urged them to explore new markets
As per news reports, Union Minister of Commerce & Industry and Railways, Piyush Goyal, held a meeting with senior managers […]
Toshi Tiwari August 7, 2019
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As per news reports, Union Minister of Commerce & Industry and Railways, Piyush Goyal, held a meeting with senior managers of IT companies. The meeting was held to discuss opportunities for Indian IT companies to invest and grow their business in new markets like the Nordic countries, Eastern and Central Europe, Canada, Australia and Africa and also explore avenues for greater investments and growth in East Asian markets like China, Japan and Korea. According to reports, India’s IT industry contributed 7.7% to the country’s GDP in FY 2017 and is expected to contribute 10% of India’s GDP by 2025. According to NASSCOM, the sector aggregated revenues of USD 160 billion in 2017. The United States account for 2/3rds of India’s IT services exports. In fact, India’s IT and ITeS industry grew to USD 181 billion in 2018-19. Exports from the industry increased to USD 137 billion in FY 2019 while domestic revenues (including hardware) advanced to USD 44 billion. It is also reported that during the discussions with Commerce and Industry Ministry, the representatives of the companies informed that although the Chinese IT services market is the third largest in the world India’s investments and business have not been able to grow in China due to various non-tariff barriers and challenges faced by Indian companies to set up their entity in China. Market access issues that create hurdles for Indian companies to open their business in China was also discussed. The top five Indian IT service companies like TCS, WIPRO, Infosys, Tech Mahindra and HCL are doing business in China for more than a decade and are employing 90% of local people in their China operations but returns are very low and therefore Indian IT service companies are not showing much interest to invest and expand their operations in China.