Karnataka & Telangana Clock The Highest Growth Rate In IT Exports
In the last decade or so, Information Technology (IT) and IT Enabled Services have made a significant contribution to the Indian Economy. As per data available with the Ministry of Commerce & Industry, the quantum of IT & ITES exports from India in 2014-15 stood at 5.94 lakh crore. IT bellwether Karnataka and India’s newest state of Telangana clocked the highest growth rate in exports in 2014-15.
Information Technology (IT) has been one of the mainstays of the Indian Economy in the last 10 years. IT & ITES exports have been growing each year and contribute significantly to the economy. In 2014-15, the total IT exports from India was 5.94 lakh crore rupees as per the information given by the Ministry of Commerce & Industry, Government of India in response to a RTI application by Factly. South India contributes more than 2/3rd of the total exports. Karnataka & the newly formed state of Telangana clocked the highest growth rates among the states with more than 10000 crore rupees in export.
IT Exports grow by more than 140% in 6 years
Indian IT exports have grown by more than 140% in six years from 2009-10 to 2014-15. From 2.42 lakh crore in 2009-10, the exports grew to 5.94 lakh crore in 2014-15. Except for 2010-11, there was double digit growth rate in rest of the years. The growth rate was close to 25% for three consecutive years (2011-12, 2012-13 and 2013-14) and it was 17% in 2014-15.
South India Contributes more than 2/3rd of the Exports
As expected, South India leads the rest of regions in IT exports by quite some distance. The share of south has been increasing in the last 3 years. From 63% in 2012-13, the share of south went to 67.6% in 2014-15. In 2014-15, West accounted for 17% of the exports (largely from Maharashtra), while the North accounted for 12.8% (largely from Noida & Gurgaon). The East accounted for only 2.5%, largely from West Bengal.
Karnataka, Telangana, Tamil Nadu & Maharashtra make up for 80% of the exports
The four states of Karnataka, Telangana, Tamil Nadu & Maharashtra make up for close to 80% of the all the exports in the three years from 2012-13 to 2014-15. The rest of the country makes up for the remaining 20%. The big IT hubs of Bengaluru, Hyderabad, Mumbai, Pune & Chennai contribute significantly to this number. It has to be noted that the Ministry of Commerce has segregated exports for the current day states of Telangana and Andhra Pradesh starting from the year 2012-13.
Karnataka & Telangana clock the highest growth rate
In 2014-15, IT bellwether Karnataka clocked the highest growth rate in IT Exports with a 30.6% growth followed by the newest state of Telangana with 20% growth rate. Of the other states with exports of more than 10000 crore, only Kerala had double digit growth rate of 20% in 2014-15 (largely because of a smaller base). The current state of Andhra Pradesh has only 7000 crore in exports since the IT hub of Hyderabad is now part of Telangana. It also looks like the bifurcation had little or no impact on the IT Industry in Telangana and Hyderabad.