Total outstanding investments attracted by Gujarat in the information technology (IT) sector may cross Rs 2 lakh crore by FY 2020-21 from over Rs 35,000 crore in FY 2015-16, industry body ASSOCHAM said today. Also Read - Ola to offer free oxygen concentrators to the needyAlso Read - Samsung Galaxy S20 FE Long-term Review
“Investments attracted by Gujarat in the IT sector increased from a meager Rs 700 crore in 2005-06 to over Rs 35,200 crore in FY 2015-16, thereby clocking a compounded annual growth rate (CAGR) of about 48 percent during the decadal period,” ASSOCHAM said in a release based on an IT sector specific investment analysis conducted by it. Total outstanding investments attracted by the IT sector across India had grown at a CAGR of a little over 17 percent, from about Rs 46,280 crore to over Rs 2.2 lakh crore as of 2015-16, it said based on data analyzed by the ASSOCHAM Economic Research Bureau (AERB).
While Karnataka ranks on top with about one fourth (24 percent) share in total outstanding investments attracted by IT sector among Indian states, Gujarat (16 percent) stands second, the industry body added. This is followed by Kerala (13 percent), Andhra Pradesh (12 percent), Tamil Nadu (6.6 percent), Maharashtra (5.1 percent), Haryana (5.1 percent), West Bengal (4.5 percent) and Telangana (4.4 percent), as of 2015-16, it said. In future, by FY 2020-21 the report states that investment in the sector in Gujarat can go upto Rs 2 lakh crore. ALSO READ: IT sector to see six percent growth in hiring: Nasscom president
With state-of-the-art infrastructure, an integrated IT policy and a strong focus towards development of human resources and talent availability, Gujarat provides conducive environment for IT industry, said the industry body. “Uninterrupted power supply, streamlining regulatory process at a single point together with speedy grant of approvals, clearances, permissions required to settle an industrial enterprise in a transparent manner also can go a long way in attracting investors in large numbers,” it said.
The share of IT sector investment in total investment in Gujarat has also grown from 0.2 percent out of about Rs 3 lakh crore in 2005-06 to around 2.5 percent out of total investments worth over Rs 14 lakh crore as of 2015-16, ASSOCHAM said. “Gujarat not only accounted for second highest share in terms of total outstanding investments attracted by IT sector across India but also clocked second highest decadal CAGR after Andhra Pradesh (51 percent),” the release quoted DS Rawat, secretary general of ASSOCHAM, as saying. ALSO READ: Mindtree s lower revenue projection could result to a difficult FY16-17 for India s IT sector: Analysts
ASSOCHAM also called for the state government to “create a more vibrant IT ecosystem, more so as growth of IT will boost the overall development across the state and further perk up it’s already strong manufacturing base.” It also called for the Gujarat government to develop Ahmadabad, Rajkot, Surat, Gandhinagar and Vadodara as probable hubs for the IT/BPO sector.