Information technology exports and India's macro-economic indicators

Abstract

PurposeThe aim of this paper is to make a descriptive exploratory effort to discern the role of IT exports in India's macro-economic indicators, like national income, employment and balance of payment in the post-Liberalization, Privatization and Globalization strategy in the 1990s. The paper also explores the vital historical developments of various dimensions of IT, such as its export growth, major software and services exports destinations, compositions of IT exports and domestic growth in India.Design/methodology/approachThis study is based on secondary data, which were collected from Balance of Payment Statistics Reserve Bank of India (RBI) and Handbook of Statistics on Indian Economy, National Association of Software and Service Companies (NASSCOM),rtd and Department of Electronics and Information Technology (DEITY). This study has used descriptive analysis and growth models for studying the objectives. Major IT sector dimensions, such as total output, exports revenue, domestic revenue, gross domestic product, employment and exports of the software and service industry, have been examined for the period 1991–2016.FindingsThe findings suggest that over the last 26 years, the information technology industry's economic footprint has extended by more than seven times. Over the same period, direct employment in the information technology sector increased at an average growth rate of around 17%. Software and services exports earn, on average, about three times greater than the other three major services of India's current account of the balance of payment.Originality/valueThis study focuses on originality in examining the role of IT exports in India's macro-economic indicators economic reforms of the 1990s and also explores the historical developments of various dimensions of IT exports and domestic growth in India. All the work has been done in original by the authors, and the work used has been acknowledged properly.