Information technology Industry of India

Information technology, and the hardware and software associated with the IT industry, are an integral part of nearly every major global industry.

• Unlike other common industries, the IT industry is knowledge-based.
• Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid pace of economic growth.
• The IT industry helps many other sectors in the growth process of the economy including the services and manufacturing sectors.

The role of the IT Industry

The IT industry can serve as a medium of e-governance, as it assures easy accessibility to information. The use of information technology in the service sector improves operational efficiency and adds to transparency. It also serves as a medium of skill formation.
The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector.

The Information Technology Association of America (ITAA) explains the “information technology” as encompassing all possible aspects of information systems based on computers.

Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems.

Owing to its easy accessibility and the wide range of IT products available, the demand for IT services has increased substantially over the years. The IT sector has emerged as a major global source of both growth and employment.

Features of the IT Industry at a Glance

• Economies of scale for the information technology industry are high. The marginal cost of each unit of additional software or hardware is insignificant compared to the value addition that results from it.

MAJOR STEPS TAKEN FOR PROMTION OF IT INDUSTRY

Domain of the IT Industry

A wide variety of services come under the domain of the information technology industry. Some of these services are as follows:

• Systems architecture
• Database design and development
• Networking
• Application development
• Testing
• Documentation
• Maintenance and hosting
• Operational support
• Security services

Software Industry of India

Adoption of new liberal policies in India has given birth immense opportunities to its industries. Success story of India's Software Industry is a step in the same direction.
India's Software Exports:

Software exports has major share in India's total exports. As of the year 2004-05, both software and services revenue grew by 32 percent to $ 22 billions and $ 28.5 billions in 2005-06.

According to NASSCOM, India's domestic market, grew by 24 per cent. Presently Indian companies have concentrated on only two largest IT service markets. They are USA and the UK. Even Canada, Japan, Germany and France represent huge growth potential in the industry.
The Software Industry, which is a main component of the Information technology, has brought tremendous success for the emerging economy.

India's young aged manpower is the key behind this success story. Presently there are more than 500 software firms in the country.

Progress of IT Industry
(In terms of US $ billion)

Year	2003-04	2004-05	2005-06*
IT software and service exports	9.2	12.0	15.2
ITE-BPO exports	3.6	5.2	7.3
Domestic market	3.9	4.8	6.0
Total	16.7	22.0	28.5

*Estimated
Source: Ministry of Communications and IT.
Overview on India's Software Industry

According to statistics, country's software exports reached total revenues of Rs 46100 crores. The share of total Indian exports form 4.9 per cent in 1997 to 20.4 percent in 2002-03. It is expected that the industry will generate a total employment of around four millions peoples, which accounts for 7 per cent of India's total GDP as in the year 2008.

The year 1995-96 was a boom for the industry. The performance of the industry over the years is as follows:

(In terms of US $ millions)

	1995-96	1996-97	1997-98	1998-99	1999-2000	2000-01*
Domestic software Market	490	670	920	1250	1700	2450
Software Exports	734	1085	1750	2650	4000	6300
Indian Software Industry	1224	1755	2670	3900	5700	8750

(* Source: NASSCOM)

Conclusion:

The credit goes to technical young peoples and English-speaking scientific professionals for the success in India's software industry. Presently for further strengthening the industry, the Government has stepped forward with more qualitative institutes.

Indian Retail Industry

The retail industry in India gathered a new dimension with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.

Key Players in the Indian Retail Sector:

The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving behind the kiranas that served us for years. Such companies are basically IT based. The other important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe Coffee Day, landmark, Khadims, Crossword, to name a few.

Retailing in India: a forecast:

Evolution of Indian retail Industry:


Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place. The inception of the retail industry dates back to times where retail stores were found in the village fairs , Melas or in the weekly markets. These stores were highly unorganized. The maturity of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in India took a new shape. Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These retail Stores demanded low investments for its establishment.
Future of organized retail in India looks bright. According to recent researches it is projected to grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10% of the total retailing by the end of 2010.

According to the Union Minister of Commerce & Industry, Shri Kamal Nath, the organized retail sector is expected to grow to a value of Rs. 2,00,000 crore (US$45 billion) and may generate 10 to15 million jobs in next 5 years. This can happen in two forms- 2.5 million of these people may be associated directly with retailing and the rest 10 million people may be gainfully employed in related sectors that will be pulled up through the strong forward and backward linkage effects.

However to compete in this sector one needs to have up-to-date market information for planing and decision making. The second most important requirement is to manage costs widely in order to earn at least normal profits in face of stiff competition.

Recent Growth Trends in Indian Economy

India’s Economy has grown by more than 9% for three years running, and has seen a decade of 7%+ growth. This has reduced poverty by 10%, but with 60% of India’s 1.1 billion population living off agriculture and with droughts and floods increasing, poverty alleviation is still a major challenge.

The structural transformation that has been adopted by the national government in recent times has reduced growth constraints and contributed greatly to the overall growth and prosperity of the country. However there are still major issues around federal vs state bureaucracy, corruption and tariffs that require addressing. India’s public debt is 58% of GDP according to the CIA World Fact book, and this represents another challenge.

During this period of stable growth, the performance of the Indian service sector has been particularly significant. The growth rate of the service sector was 11.18% in 2007 and now contributes 53% of GDP. The industrial sector grew 10.63% in the same period and is now 29% of GDP. Agriculture is 17% of the Indian economy.

Growth in the manufacturing sector has also complemented the country’s excellent growth momentum. The growth rate of the manufacturing sector rose steadily from 8.98% in 2005, to 12% in 2006. The storage and communication sector also registered a significant growth rate of 16.64% in the same year.

Additional factors that have contributed to this robust environment are sustained in investment and high savings rates. As far as the percentage of gross capital formation in GDP is concerned, there has been a significant rise from 22.8% in the fiscal year 2001, to 35.9% in the fiscal year 2006. Further, the gross rate of savings as a proportion to GDP registered solid growth from 23.5% to 34.8% for the same period.

Indian Economy Overview

India has been one of the best performers in the world economy in recent years, but rapidly rising inflation and the complexities of running the world’s biggest democracy are proving challenging.

India’s economy has been one of the stars of global economics in recent years, growing 9.2% in 2007 and 9.6% in 2006. Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market.
Like most of the world, however, India is facing testing economic times in 2008. The Reserve Bank of India had set an inflation target of 4%, but by the middle of the year it was running at 11%, the highest level seen for a decade. The rising costs of oil, food and the resources needed for India’s construction boom are all playing a part.

India has to compete ever harder in the energy market place in particular and has not been as adept at securing new fossil fuel sources as the Chinese. The Indian Government is looking at alternatives, and has signed a wide-ranging nuclear treaty with the US, in part to gain access to nuclear power plant technology that can reduce its oil thirst. This has proved contentious though, leading to leftist members of the ruling coalition pulling out of the government.

As part of the fight against inflation a tighter monetary policy is expected, but this will help slow the growth of the Indian economy still further, as domestic demand will be dampened. External demand is also slowing, further adding to the downside risks.
The Indian stock market has fallen more than 40% in six months from its January 2008 high. $6b of foreign funds have flowed out of the country in that period, reacting both to slowing economic growth and perceptions that the market was over-valued.

It is not all doom and gloom, however. A growing number of investors feel that the market may now be undervalued and are seeing this as a buying opportunity. If their optimism about the long term health of the Indian economy is correct, then this will be a needed correction rather than a downtrend.

The Indian government certainly hopes that is the case. It views investment in the creaking infrastructure of the country as being a key requirement, and has ear-marked 23.8 trillion rupees, approximately $559 billion, for infrastructure upgrades during the 11th five year plan. It expects to fund 70% of project costs, with the other 30% being supplied by the private sector. Ports, airports, roads and railways are all seen as vital for the Indian Economy and have been targeted for investment.
Further hope comes from the confidence of India’s home bred companies. As well as taking over the domestic reins, where they now account for most of the economic activity, they are also increasingly expanding abroad. India has contributed more new members to the Forbes Global 2000 than any other country in the last four years.

Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of informations about Banking in India in this section.

The first bank in India to be given an ISO Certification	Canara Bank
The first bank in Northern India to get ISO 9002 certification for their selected branches	Punjab and Sind Bank
The first Indian bank to have been started solely with Indian capital	Punjab National Bank
The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act	South Indian Bank
India's oldest, largest and most successful commercial bank, offering the widest possible range of domestic, international and NRI products and services, through its vast network in India and overseas	State Bank of India
India's second largest private sector bank and is now the largest scheduled commercial bank in India	The Federal Bank Limited
Bank which started as private shareholders banks, mostly Europeans shareholders	Imperial Bank of India
The first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974	Bank of India, founded in 1906 in Mumbai
The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 132 years	Allahabad Bank
The first Indian commercial bank which was wholly owned and managed by Indians	Central Bank of India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.

Indian Banks Association (IBA)

The Indian Banks Association (IBA) was formed on the 26th September, 1946 with 22 members. Today IBA has more than 156 members comprising of Public Sector banks, Private Sector banks, Foreign banks having offices in India, Urban Co-operative banks, Developmental financial institutions, Federations, merchant banks, mutual funds, housing finance corporations, etc.

The functioning of IBA

• To promote sound and progressive banking principles and practices.
  
  
• To render assistance and to provide common services to members.
  
  
• To organise co-ordination and co-operation on procedural, legal, technical, administrative and professional matters.
  
  
• To collect, classify and circulate statistical and other information.
  
  
• To pool together expertise towards common purposes such as reduction in costs, increase in efficiency, productivity and improve systems, procedures and banking practices.
  
  
• To project good public image of banking through publicity and public relations.
  
  
• To encourage sports and cultural activities among bank employees.

The Offices of IBA

Stadium House,
Block II & III, 6th Floor,
Veer Nariman Road, Mumbai 400 020.
Tel.:91-22- 22894500, Fax:91-22-22835638

World Trade Centre Complex,
Centre I, Units 1,2 & 4,
6th Floor, Cuffe Parade,
Mumbai-400 005.
Tel.:91-22- 22174040, Telex: 011 85146, Fax:91-22-22184222.
Email: ibalink@bom3.vsnl.net.in

The Organisational Structure of IBA

The Managing Committee manages the affairs, business and funds of IBA. The managing Committee is elected by the Ordinary members of the Association, and is the highest management and policy making body of the Association.

The Chairman of the Association heads upon the working of the Association. He provides guidelines to the Association. The administrative head of IBA is the Chief Executive of IBA. He is also the Secretary to the Managing Committee. He leads a team of executives, officers and other staff members.

The contact details of IBA

At World Trade Centre Complex	Direct Nos.
Legal	91-22-22187946 91-22-22174006
Banking Policy	91-22-22182217 91-22-22174014
Payment Systems	91-22-22182196 91-22-22174013
Banking Operations	91-22-22182247 91-22-22174015
Publicity	91-22-22180821 91-22-22174012
Technology	91-22-22182196 91-22-22174011
Library	91-22-22182288 91-22-22174009
At Stadium House :
Personnel (HR & IR)	91-22-22028525 91-22-22894502 91-22-22831636 91-22-22894501
Administration & Accounts :	91-22-22824846 91-22-22894518

IBA constitutes standing committees/task forces/ small groups/ committees of experts from member banks for the examining of various aspects relating to industry level issues to get solutions.

Recommendations of these groups/committees, are communicated to members with the approval of the managing committee or taken up with the concerned authorities for action.