IT AND BPM

FDI in IT Sector in India

India has emerged as the world’s largest BPM destination with the IT-BPM sector having a staggering share of 45% in the total Indian services export. The sector is the largest employer within the private sector, employing 4.1 million people. It is, therefore, not surprising that the government has eased foreign investment policies in order to encourage more FDI in the IT sector in India.

Indian IT industry has more than 17,000 firms, of which over 1,000 are large firms with over 50 delivery locations in India. The country's cost competitiveness in providing IT services, which is approximately 3-4 times more cost-effective than the US, continues to be its unique selling proposition in the global sourcing market. India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country.

The industry amounts to 8 per cent share in the country's GDP. 

Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route.

100% FDI in the IT sector in India is permitted in B2B E-commerce.