Information Technology ( or IT) can be defined as the study or use of systems, particularly computers and telecommunications, for storing, retrieving and sending information. In other words, it is the use of computers to create, process, store, retrieve and exchange all kinds of electronic data and information. Information technology in India is a vast industry which comprises of information technology services, consultancy and outsourcing.

There are six main types of information system and they are Transaction processing systems, Office automation Systems, Knowledge Management systems, Management information Systems, Decision Support Systems and Executive Support System. The IT Industry accounted for 8% of India’s GDP in 2020. The United States accounts for 2/3 of India’s IT services exports. In the contemporary world economy, India is the largest exporter of IT. Exports dominate the Indian IT industry and constitute about 79% of the Industry’s total revenue. However, the domestic market is also significant, with robust revenue growth.


India’s IT services industry was born in Mumbai in 1967, with the creation of Tata Consultancy Services (TCS). It started properly in 1974, when main frame manufacturing company, Burroughs, asked its India sales agent, Tata Consultancy Services ( TCS ), to provide programmers for the installation of Systems Software for one of their American clients. In those days, the industry mostly comprised of Bombay-based conglomerates whose chief purpose was to supply programmers to international IT firms, overseas. Indian IT industry of 1970s faced the most struggle and at that time it was state-controlled.

The import tariffs levied by the state were too high; 135% on hardware and 100% on software. In 1894 this industry witnessed some favourable changes as there was a considerable reduction of upto 60% on the import tariffs. In the mid 1980s, work shifted to India and was done mainly by domestic firms. The shift of work to India was responsible for Bangalore’s development and the gradual decline of other centres like Mumbai. Since 1990s, value addition has increased and domestic firms have become less dominant. This happened owing to the evolution of multinational firms’ response to new policies. Currently, Indian IT companies include the likes of Tata Consultancy Services (TCS), Wipro, Infosys, HCL and many more, which are recognised all over the world as providers of top class software services.


Today, India is one of the major information-technology-professional-producing countries of the globe. It is also one of the strongest pillars of Indian economical growth. The current scenario of Information Technology in India is very brisk and reviving. Basically, Information Technology is spread over and involved in every sector; be it Education, Farming, Health/Hospitality, Research/Development, Weather/Environment, Communication, Banking, Travel, Share Marketing and many more. We can see its application in everything; be it filling up a form in school/college/university, booking ticket at railway/bus/airways/waterways, knowing the forecast of earthquake/tsunami/cyclone, communucating with people through mobile/internet; everywhere it is required. India’s economy for the last twenty years, is gradually emerging in the world podium owing to Information Technology. India’s revenue from IT-BPO is more than 50 Billion US dollars, which is the highest in Asian countries.

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