Role Of IT Industry In Driving India's Economic Growth

Abstract

The Information Technology (IT) industry has emerged as a cornerstone of India's economic transformation, particularly following the economic liberalization reforms of 1991. This paper analyzes the pivotal role of the IT sector in driving India's economic growth by examining its contributions to GDP, exports, and employment generation. Post-1991, the IT industry experienced exponential growth due to policy support, global demand, and a skilled English-speaking workforce. It has since become one of the largest contributors to India's service exports and a significant source of direct and indirect employment. The sector's impact extends beyond economic indicators, fostering urban development, innovation, and global integration. This study explores the structural evolution of the IT industry, assesses its economic contributions quantitatively and qualitatively, and highlights the challenges and opportunities in sustaining its momentum in the digital era.