The investments in the IT sector in Gujarat is expected to cross Rs. 2 lakh crores by 2020 as opposed to the investment of Rs. 35,000 crores in 2015 according to an analysis done by ASSOCHAM. “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 per cent during the decadal period”, ASSOCHAM said. The total investments attracted by the IT sector in India grew by 17% to Rs. 2.2 lakh crores in 2015 as compared to an investment of Rs. 46,280 crores in 2005. This analysis was done by ASSOCHAM Economic Research Bureau (AERB). Read more on ASSOCHAM
Karnataka ranks the top in India with a 24% share in the IT investments. Gujarat stands second with a 16% share in IT investments. The shares of other states are thus: Kerala (13 per cent), Andhra Pradesh (12 per cent), Tamil Nadu (6.6 per cent), Maharashtra (5.1 per cent), Haryana (5.1 per cent), West Bengal (4.5 per cent) and Telangana (4.4 per cent), as of 2015-16, according to ASSOCHAM. “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 the IT industry”, said ASSOCHAM.
“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”, ASSOCHAM said. The IT investment share of Gujarat was only 0.2% in 2000 and it has grown to 16% in 2015! “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 per cent)”, DS Rawat, general secretary of ASSOCHAM said. ASSOCHAM also requested the state government to create a more vibrant IT ecosystem, so that, the growth of IT industry will boost the overall development across the state and further perk up it’s already strong manufacturing base. Read more on Startup News