According to a report by the United Nations (UN), the government’s Digital India program and the country’s burgeoning start-up environment indicated that India’s domestic market for computer services is likely to grow faster than its exports.
In a report by the United Nations Conference on Trade and Development (UNCTAD), it has been said that “The computer services industry in India is increasingly catering to the domestic market, leveraging expertise gained from exporting, while at the same time reducing an over-reliance on such exports.”
The report observed that India ranked fourth in terms of growth in the state of the ICT sector’s value-added in GDP between 2010 and 2017, said the report. “The domestic market for computer services in the country is forecast to grow faster than their exports, fuelled by the government’s Digital India program, its burgeoning start-up and venture capital scene and increased computer use by the MSMEs (Micro, Small and Medium Enterprises),” it added.
The first-ever Digital Economy Report said the size of the global digital economy range from 4.5 to 15.5 percent of world GDP. Talking about the value-added in the information and communications technology (ICT) sector, China and the US together occupy 40 percent of the world total.
The US holds the world’s largest ICT sector at about a trillion dollars which is almost double the size of the second-largest, China. The global computer services industry is dominated by the US. “India has the largest share among developing countries in this context,” said the report.
India stood fourth with growth driven mainly by computer services. Ireland is on the top of the list of countries in terms of value-added in computer services as a share of GDP by quite a significant margin, reflecting the strong presence of regional offices of US digital companies, followed by Sweden.
In 2017, India ranked 9th in e-commerce sales with a total of $400 billion in sales as a share of GDP. Brazil, India, and Moldova are the three developing and transition economies employed over 50 percent of ICT sector employees in computer services.
India is the largest developing-country exporter of such services, almost a third of which are computer services. India and China are leading in the creation of start-ups for 58 percent of the total for the region.