Here's what led to a boom in IT industry

One of the most important sectors in the Indian economy, the IT industry has witnessed a record growth in the recent few years. From USD 150 million in 1991 to record breaking USD 100 billion in 2012, in the last 10 years the industry has grown at an average rate of 30 percent. So, what led to this boom in the industry?

The liberalisation of the Indian economy opened up avenues for the IT industry leading to an abundance of skilled manpower, reduced telecommunication and internet costs and reduced import duties on software and hardware products.

The industry today accounts for a major share of the country’s exports and is a huge generator of employment. A high inflow of FDI is also expected in the coming years and while new markets for software exports from India have opened up in the Middle East, parts of Asia, Africa and Eastern Europe, another important area for the growth of this sector is the domestic market. Industry experts argue that the future lies in ensuring that the benefits of the industry percolate to the grass route level.

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