ED Presentation On Indian IT Industry
ED Presentation On Indian IT Industry
ED Presentation On Indian IT Industry
PLAY
divided into 4 major segments – IT
services, Business Process Management
• India is fast emerging as a
(BPM), software products & engineering
digital economy…Digital services, and hardware.
India, Make in India, Skilling IT Services:
India are creating a renewed Market Size: USD75 Bn
thrust on the domestic market. >81% of revenue comes from
• Indian IT companies can offer
Exports
solutions in the following Banking, Financial Services &
segments: Insurance (BFSI) is the major
Social Mobile Analytics
vertical.
& Cloud (SMAC), BPM:
ERP, CRM, mobility and Market size: USD28 Bn
user experience 87% of revenue comes from Exports
technologies. Market size - USD54 billion by 2025
India2016: Indian IT Industry
Business Process Software Products & Engineering
clocked revenues of USD 146
Management sector, Services:
billion…Exports segment USD
which is being driven by Market size: USD27 billion
98.5 Billion…Domestic market
greater automation, >84% of revenue comes from
grew by 14%- fuelled by
expanding omni-channel Exports
ecommerce
presence, application of
Industry revenues (excluding e-Commerce) total at USD
Indian IT-BPM industry 143 Bn; growth reflects variable impact of currency.
IT-BPM revenue break-up1 Exports cross USD 100 Bn; doubled over last 6 years
USD billion
BFSI
Hi-tech/
APACRoW 3%4% Telecom
8% 2% 3% Manufacturin
Continental 5% g
Europe
11% 10% 41% Retail
Healthcare
Travel &
UK USA Transportatio
17% 62% 16% n
Construction
18% & Utilities
Others
* Excluding Hardware ** includes IT services, Software products, ER&D and product development *** excludes
DRIVERS of E-commerce:
E-commerce Young demography: >90% of online shoppers in
India belong to the 18 – 35 year age group.
• India’s E-commerce business valued @ US$ 17 Bn Gender usage: 65% male and 35% female
in 2016…US$70~90 Bn by 2020. Rising Broadband & 3G penetration
• 70 Mn online shoppers…100 Mn by end-2017. Rising standards of living & upwardly mobile
• 63% of e-commerce is travel-related (tickets, hotel middle class with high disposable incomes and
bookings etc. busy lifestyles.
• E-tail business @ 29% Urbanisation will increase to 40% from 31%
• Mobile/DTH recharge seeing >1 Mn transactions per Growing nuclear households.
day.
India’s leading e-commerce companies – Flipkart
• Electronics & Apparel are choicest purchases. Growth in Mobile Phone user base is helping
(45% share), Snapdeal (26%), Amazon (12%),
PayTM (7%) and Others (10%). the growth of the E-commerce Industry
Mode of Payment: Cash on Delivery (76%), Debit
Cards (10%), Credit Cards (7%), Net Banking • According to World Bank: “A 10% increase in
(5%), and Others (2%) broadband penetration would yield a 1.38% increase
Policy Support: in GDP growth”.
• 100% FDI via automatic route is permitted in B2B • India’s Internet economy to reach a value of US$200
e-commerce. billion by 2017.
• FDI in B2C e-commerce is permitted in the • 2016 data:
following cases: 1 Billion+ active mobile phone subscriptions.
Single brand entities allowed to venture into 402 million+ internet users.
E&R
D
According to Consulting Firm – Zinnov:
“India accounted for $12.3 billion, or 40%, of
the total of $31 billion of globalized
engineering and R&D (E&RD) in 2015”.
Indian service providers going bimodal- growth in both traditional and digital
markets
Edu-tech IoT
110+ Incubators
Incubators &
& Accelerators
Accelerators 200+ 75+
TCS: 31 academic alliances and 21 R&D partners IBM Innovation Centers: 100 Big Data & IoT startups tie-
ups
MINDTREE: '5/50 initiative' to promote in-house HCL: 'Value-portal' and 'MAD Jam' to foster employee-
disruptive ideas led ideas
START-UP INDIA
Envisions building a strong eco-system for
nurturing innovation and Startups in the
• India ranks 3rd globally in terms of the number of
country and empowering Startups to grow
start-ups.
through innovation and design.
• 19,000 technology-enabled start-ups. Dominated by
Features of the Scheme: Internet and financial services start-ups.
• Simple Compliance Regime based on Self- • World's youngest start-up nation ~ 72% founders
certification less than 35 years in age.
• Bengaluru ranks 15th globally in Start-up Ecosystem
• Legal support & fast-tracking patent
Ranking for 2015.
examination at reduced costs.
• Number of start-ups with Series A round funding in
• Relaxed norms of public procurement for
2014 was 46 while it increased to 114 in 2015.
start-ups • Total Start Up investment: $4.7 billion in 2014 to $
• Faster Exit. 7.2 billion in 2015.
• Fund support through a corpus of US$ 1.5Bn. Venture Capitalists (VC) operating in India:
• Credit guarantee support ~ US$ 75Mn per • Early VCs: Seedfund, Accel, Kae Capital, and
year for 4 years (ending in 2020) Venture East.
• Late VCs: Helion, Sequoia, Matrix.
IT Revenues to reach US$ 350 billion by
2025 India technology & services revenue pool Digital revenues to spearhead growth
USD billion Global enterprise tech spend will rise to USD
Digital tech 4 trillion by 2025, 80 per cent of incremental
350
Traditional tech tech spending will be digital
Source: NASSCOM 23
ELECTRON Top 10 electronic products contributing about 70%
by total revenue include:
ICS
• Indian Electronics System Design and Manufacturing
• Mobile Phones
• Flat Panel TVs
(ESDM) industry is one of the fastest growing sectors • Notebooks
in the country. • Desktops
• Digital Camera
• Changing global landscapes in electronics design and • Inverters & UPS
manufacturing capabilities, and cost structures have • Memory Cards & USB Drivers
turned the attention of global companies towards • 4W EMS
India. • LCD Monitors
Segment:
• Servers 2020 Mkt. Size
• State of Play:
− 65% of the electronics is currently imported;
LED 35
− 25-30% of the systems simply assembled;
Telecom Equip... 34
− less than 10% of the electronic systems are
Laptops/Porta... 34
completely designed and manufactured in India. Consumer Electro... 29
− Almost 100% of semiconductors are imported.
Medical Electro... 12
• Domestic production can cater to a demand of only
Set Top B... 10
$100Electronics
Bn by 2020… demand-supply
imports, gap of the
are currently $300 Bn.
Automotive Electro... 10
3rd highest, next to crude and gold. ED 2017
ELECTRONICS Modified Special Incentive Package Scheme
•(MSIPS)
Subsidy of 25% on Capex if the ESDM unit is in
…2 non-SEZ and 20% on capex if within SEZ…available
for investments made within 5 years from date of
• Policies to promote ESDM industry include:
approval.
National Policy on Electronics
• 200% deduction on R&D for electronic chip
Preferential Market Access
manufacturing units.
Modified Special Incentive Package (MSIP)
• Reimbursement of central taxes and duties (like
Scheme
custom duties, excise duties and service tax) for 10
Fab policy
years in select high- tech units like Fabs,
Electronic Manufacturing Clusters (EMCs) and
Semiconductor Logic and Memory chips, LCD
Information Technology Investment Regions
fabrication…applications
Electronic accepted Scheme
Manufacturing Clusters till Dec 2018.
(ITIRs)
• Budget 2017-18: US$111 million) worth incentives
Export
National Incentives
Policy on Electronics • Grant assistance for setting up Greenfield &
under MSIPS scheme.
• To achieve a turnover of $400Bn by 2020 by Brownfield
Export EMCs.
Incentives
investing $100Bn. • O% Basic Customs Duty on products covered under
• To build a supply chain…raise local production from the Information Technology Agreement (ITA) of
20~25% toMarket
Preferential over 60%.
Access WTO & Specified raw materials used for
• Preference for locally manufactured electronic goods manufacture of electronic components and optical
in Govt. procurement…not less than 30 % of the fibers and cables.
total procurement. • Focus Product Scheme (FPS) – Duty Credit 2% of
THANK