Tech will contribute 5.5% of India's gross domestic product in 2008, up from 1.2% in 1998
The Indian tech industry is expected to generate around US$64 billion in revenues in 2008--a 33 percent growth--while also having a significant impact on the country's economy.
Services and software exports are expected to contribute around US$41 billion with the domestic market generating more than US$23 billion, according to Indian tech industry body, Nasscom.
The Indian tech industry is aiming to hit total revenues for software and services of US$75 billion by 2010.
But Nasscom's 2008 Strategic Review shows the growth of the tech industry has had other benefits other than lining the pockets of India's mega-corporations.
As a proportion of national GDP the Indian tech sector will hit 5.5 percent in 2008, up from just 1.2 percent in 1998. It is also expected to contribute a net value to the economy of up to 3.9 percent.
The Nasscom study found the tech industry has also fueled a 36 percent increase in direct exports and a boosted direct employment by a compound annual growth rate of 26 percent over the past decade.
And by the end of the 2008 financial year, almost two million Indian workers will be employed in the tech industry.
The tech industry has also contributed to an increase in consumer spending--for every rupee earned by the Indian tech-BPO industry, an additional rupee is spent in the economy.
Its influence in other parts of Indian life includes contributions to community initiatives, human resource development, education, health and the empowerment in business.
The tech industry has also fueled the growth of private equity and venture capitalism funding and spurred entrepreneurship.
Som Mittal, Nasscom's president, said the industry is on track to exceed its 2010 targets but still needs to resolve issues around talent, manpower and infrastructure.
Nasscom chairman, Lakshmi Narayanan said the increase in revenues "reinforces the confidence of global corporations in India".
Narayanan, also vice-chairman of Cognizant, said the Indian IT-BPO industry is poised for broad-based growth, strengthening its position as "the primary sourcing location" for software, IT infrastructure and business process-related services.