The revenue of the Indian ICT (Information and Communication Technology) sector is expected to reach an approximate value of about INR 14,42,839.5 crores (US$ 225 Billion) by the end of 2020 from current level of INR 10,53,434 crores (US$ 164.3 Billion) growing at CAGR of about ~11.1%, reveals the ASSOCHAM-RNCOS study.
As 2017 draws to a close, the Indian ICT (Information and Communication Technology (ICT)) industry would continue to face the various challenges in 2018 too such as frequent changes in tax structure, inflexible labour laws, absence of funding mechanisms, limited focus on value addition and exports, sustainability & affordability, adds the paper.
The study jointly published by ASSOCHAM and RNCOS has stated that since cloud, mobility, social media and big data analytics are playing significant role in driving growth of software products and continue to drive the need for investments.
The study has further observed that the Railway Ministry plans will give a digital push by introducing bar-coded tickets, global positioning system (GPS) based information systems inside coaches, integration of all facilities dealing with ticketing issues, Wi-Fi facilities at stations, super-fast long-route train service for unreserved passengers among other developments.
ICT deployment in approximately 10 lakh schools and 18,000 higher educational institutions can range from multimedia in private schools and use of low-cost devices in government schools to online coaching and electronic classroom content.
The Indian online education market which is worth INR 2,511.34 crores (US$ 391.6 Million) in 2017, is expected to grow 7X in the next four years. The application of ICT is not just restricted to offering courses online in India: schools and colleges across India have increased their investment in the internet, productivity tools and programming applications to enhance the educational ecosystem.
ASSOCHAM said, almost all of India’s burgeoning urban middle class has access to the internet, and broadband access can cost as low as INR 780 per month for a 2 Megabit per second downlink speed. Rising income levels are also expected to stimulate demand for the products and services sold online.
In addition, consumer internet services in India have exhibited phenomenally high growth rates. With increasing numbers of Smartphone adoption and broadband, services are being delivered in new ways enabling a cost-effective operation for start-ups and large corporations alike.
The healthcare sector, which includes hospitals, medical infrastructure, medical devices, clinical trials, outsourcing, telemedicine and health insurance, stood at INR 7,04,528 crores (USD 110 billon) in 2016 and will see a compounded annual growth rate (CAGR) of 22.5%.
The usage of ICT in healthcare in the public and private sector differs widely. Although the private sector has adopted the use of the latest technologies into their healthcare systems, the aggregate spending on IT in the healthcare sector still remains small compared to other sectors.
The major opportunities in the Indian healthcare market are in mobile phone and internet penetration helps patients to gain access to doctors over long distances.
Some of the recommendations of the study are to develop a sustainable domestic supply of high-level ICT skills to drive the further expansion and development of the ICT sector, establishment of sustainable design practices by incorporating the latest design standards and technologies that reduce energy consumption, increase energy efficiency, utilize recycled and natural materials, and generate clean or renewable electricity.
Adoption of Industry leveraging PPP models and building applications for e-health, e-education, e-financial services and e-skills. Promote tax incentives to domestic companies for investments in technology (green, SMBs). Enhance bilateral and multilateral agreements with key and emerging markets that address issues of visas, work permits, language skill development, social security, double taxation etc. More and more Centres of Excellence (CoEs) should be developed focused on high potential innovation segments.