IT & ITES

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 India Overview
Quick Facts
Overview
• Indian IT-ITeS industry revenue is estimated at US$ 164.0 billion in FY2018-19 as US$ 350 7.7%
compared to US$ 151.0 billion in FY2017-18, growth of ~ 8.0% billion Contribution to
Market size India’s GDP
• IT-ITeS exports are estimated at US$ 136.0 billion in FY2018-19, as compared to US$ projection by 2025
126 billion in 2017-18, growth of 7.3%
• Domestic IT-ITeS revenue (excluding hardware) is estimated to reach US$ 28 billion
in FY2018-19 as compared to US$ 25 billion in 2017-18, growth of ~10.7% 1000+
Global delivery ~4.1 million
centers in 80 Skilled workforce
countries
180 R e ve n u e ( i n U S $ b i l l i o n )
160 Year 2018-19
28
140
24
25
Revenue share in IT/ITeS sector
120 21.7
21 Exports
100 19 BPO 21%
80 Domestic
136
60 126
117
97.8
107.8 IT Services
40 87.3 57%
20 ER&D and
software
0
2013- 14 2014- 15 2015- 16 2016- 17 2017- 18 2018-19(E) products
22%
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Source: Annual Report 2018-19 - Ministry of Electronics and Information Technology, Press Information Bureau
 Digital India Initiatives
Launched in 2015, Digital India is a flagship program of the Government of India with a vision to
transform India into a digitally empowered society and knowledge economy

Estimated Investment
• ~ Rs 100,000 Cr in ongoing schemes (under MeitY)
• ~Rs 13,000 Cr for new schemes & activities

Pillars of Digital India Impact of Digital India

• Broadband Highways • Broadband in 250,000 villages, universal phone connectivity
• e-Governance – Reforming Government through Technology • 400,000 Public Internet Access Points
• Universal Access to Mobile Connectivity • Wi-Fi in 250,000 schools, all universities; Public Wi-Fi hotspots for
• eKranti - Electronic delivery of services citizens

• Public Internet Access Programme • Jobs: Direct 17 million & Indirect at least 85 million

• Information for All • e-Governance & e-Services: Across government

• Electronics Manufacturing • Digitally empowered citizens - public cloud, internet access

• Early Harvest Program • Leader in use of IT in services – health, education, banking

• IT for Jobs
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Source: Digital India
 Government of India: Schemes
Export Promotion Schemes
BPO Promotion Schemes (Launched in 2014)
Software Technology Parks (STPs) (Est. in 1991)
• Creation of employment opportunity for 1,45,000
• 100% Customs duty exemption on imports. persons
• 100% Central excise duty exemption on indigenous procurement. • Capital Support up to 50% of CAPEX and OPEX
• All relevant equipment/goods can be imported (except prohibited items). incurred on admissible items subject to upper ceiling
• Equipment can also be imported on loan basis/lease. of INR 1 lakh/seat

• 100% FDI is permitted through automatic route. • Special Incentives: 5% for employing more than 50%
women employee, 2% for employing 4% persons
• Sales in Domestic Tariff Area(DTA) up to 50% of the FOB value of exports permissible. with Disability, 5% for rural area etc.
• Depreciation on computers up to 100% over 5 years is permissible.

Special Economic Zones (SEZ) Scheme (SEZ Act 2005) Other Schemes
• Duty free import/domestic procurement of goods for development, operation and Digital India internship Scheme
maintenance of SEZ units. • An internship for student to gain practical
• 100% Income tax exemption on export income for first 5 years, 50% for next 5 years experience in the field of Cloud Computing, Cyber
thereafter and 50% of the ploughed back export profit for next 5 years. Law/IT Act, Digital Payment, Geographical
• Exemption from Central Sales Tax, Service Tax and State sales tax. These have now Information System, R&D in Information Technology
subsumed into GST and supplies to SEZs are zero rated under IGST Act, 2017. and Software industry promotion along with token
renumeration of INR 10,000.
• Single window clearance for Central and State level approvals.

Source: Ministry of Electronics and Information Technology

Growth Drivers
• Increasing demand of IT services • Export Promotion Schemes
due to emerging/new • BPO Promotion Schemes
technologies • Digital India Internship Scheme
• Global IT spending estimated to • National Knowledge Network
reach US$ 4 trillion in 2021 • GI Cloud (MeghRaj)
Globa
l Gov-
De- ern-
mand ment • ~4.1 million skilled workforce
• Robust Fiber Network
• Multiple Data Centers Infra- Initia- • Addition of more than 0.17
struc- Talent
tives
• Software technology parks(STPI) Pool million skilled employees in
ture
• Special Economic Zones (SEZ) 2018-19
Do-
Cost
mes-
Ad-
tic
van-
Grow
tage
th Growing domestic market due to
• Skilled & talented workforce at
initiatives such as:
competitive labor cost as
• Digital India
compared to US & Europe
• Smart Cities
• E-Delivery of Citizen services
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 Research & Development environment
Government of India initiatives in the field of R&D
Centre for Development of Advanced Computing (CDAC): R&D
centers established for development of complex IT solutions and
competence building in the R&D center. Thrust areas are:
• Multi-lingual Computing
• Information and Cyber Security
• Software Technologies
National Supercomputing Mission (NSM): To build supercomputers
for cutting edge Science & Technology research. Thrust areas are:
• High Performance computing for problem solving
• Promotion of R&D activities
Information Technology Research Academy (ITRA) Division:
National program to achieve competitive advantage in IT and
increasing the national R&D capacity. Thrust areas are:
• IT based Innovations in Sustainability of Water Resource
• Mobile Computing, Networking and Applications
IT in Emerging Areas (ITEA) Division: To promote emerging areas
of technology to induce progressive developments and competitive
advantage. Thrust areas are:
• Digital Preservation • Green Computing
• Free and Open Source software(FOSS)

Major Companies which setup their R&D centers in India Advantage of setting R&D center in India
• Huge workforce of Science & Engineering
graduates
• Availability of workforce at low cost
• Well-established Intellectual Property Rights
policy
• A massive startup ecosystem
• Government Support & Incentives
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Source: Ministry of Electronics and Information Technology

Gujarat Overview
Quick Facts
Overview
• Investments attracted by Gujarat in the IT sector increased from a meager Rs 700 2nd Rank
crore in 2005-06 to over Rs 35,200 crore in FY 2015-16 In IT/ITES sector
investment in
• Gujarat is home to 5000+ thriving small, medium and large high performing ICT India
Industries and is also rapidly moving towards becoming an important hub of
technology startups.

• Gujarat now stands second with an impressive 16% share in terms of total 5000+
outstanding investments attracted by the IT/ITES sector countrywide. ICT companies in
Gujarat
• IT clusters in Gujarat are spread across the cities of Ahmedabad, Gandhinagar,
Vadodara and Surat

Software Export (in crore) Market presence by size of

140
enterprise
117.2
120
94.6
10%
100
85.1 82.8
77
80 SMEs
60
30% Medium
40
60% Large
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0
2013-14 2014-15 2015-16 2016-17 2017-18 7
Infrastructure

GIFT city Garima Park - STPI Gandhinagar L&T Technology

Gandhinagar Park in Vadodara
• GIFT city, with its • Leading IT services & • Software technology park • The L&T Knowledge City is
consulting firm TCS of India, Gandhinagar the hub of L&T’s
World Class developed a green developed for providing Technology Services
infrastructure, offers campus of over 25.5 including several other key
Value Added Service
an excellent platform acres of land in required for software business of the Group.
for setting up of Gandhinagar. development and export • Campus takes a lead in
export oriented IT/ • It’s a global network of operation. green initiatives and is
ITeS services software development • It has a sub-center at Surat widely recognized for its
and delivery center to promote Start-ups and sustainability &
SMEs. community centric efforts.

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 GIFT City

GIFT City

India Gujarat

Int. Airport Ahmedabad (12 km) GIFT Advantage Ideal Destination for
Nearest Urban Ahmedabad & Gandhinagar • World class • Talent availability • Operations Hub Application
Areas (State Capital) infrastructure Development
• Single window • Back Office
• Financial Incentives, clearance • KPO/BPO • Artificial Intelligence
Benefits & Incentives Applicable
regulatory freedom • Integrated
• Govt. Of Gujarat-IT / ITeS Policy • Vertical IT/ITeS Parks • Innovation Center
• Multi-Services development • Web/Digital content
• Special Economic Zones (SEZ) Scheme • Data Analytics
Special Economic (Commercial, development
• Competitive Tax Incentives for IFSC Unit Zone (SEZ) Residential & Social) • Robotics
• Government of • High speed IP-based • Data Center
25% allotment complete of the ~62 mn Sq. ft of
Built Area planned with committed investment of
Gujarat IT/ITeS network
US$ 1.5 bn Policy incentives
• ERP/Software & 9
Source: Gujarat International Finance Tec-City
 Gujarat: IT/ITeS Special Economic Zones

M/s Aqualine Properties Pvt. M/s Gujarat Industrial

M/s Larsen & Toubro Limited
Ltd. (Raheja Group) 5.11 hectares
Development Corp.
27.85 hectares 28 hectares
Vadodara
Gandhinagar Gandhinagar

M/s Ganesh Infrastructure Pvt. M/s Calica Construction &

Tata Consultancy Services Ltd.
Ltd. Impex Pvt. Ltd.
10.32 hectares
33 hectares 11 hectares
Gandhinagar
Ahmedabad Ahmedabad

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Source: Special Economic Zones in India, Ministry of Commerce & Industry, Department of Commerce
 Gujarat: IT/ITeS Policy (2016-2021)
Incentives for IT/ITeS Units
1. Capital Subsidy @25% up to a ceiling of INR 1 Crore
2. Incentives of INR 1/unit on Power Tariff and 100%
reimbursement of Electricity Duty for 5 years
3. Lease Rental Subsidy @INR 8/Sqft to INR 3/Sqft for 5 years
4. Reimbursement on EPF for a period of 5 years
5. Interest Subsidy @ INR 25 to 50 Lakhs/Year for 5 years
6. 100% Reimbursement on Stamp Duty & Registration Fee
7. VAT/CST/GST Incentive for a period of 8 years
8. Skill Enhancement @INR1 Lakh/year/unit
9. Quality Certification @INR 6 Lakhs in 5 years
10.Patent Assistance up to INR 10-25 lakhs in 5 years
Source: DST Gujarat: https://dst.gujarat.gov.in/policies.htm
Incentives for Vertical/Horizontal IT/ITeS Parks
1. Horizontal IT/ITeS Parks: Capital Subsidy @ 25% of fixed capital
investment in buildings and infrastructure facilities, upto INR 25
Cr.
2. Vertical IT/ITeS Parks: Capital Subsidy of Rs. 300 per sqft for built-
up area, upto INR 25 Cr.
3. 100% Reimbursement of Stamp Duty/ Registration fee/
Conversion fee/ Lease/ Transfer of land
4. Incentives of INR 1/unit on Power Tariff for 5 years
5. 100% Reimbursement of Electricity Duty for 5 years if power
purchased from the State electricity distribution companies or
power distribution licensees.
Incentives for R&D Institutions
1. To setup - Assistance up to 60% of the project cost, excluding land,
ceiling of Rs 50 lakhs.
2. For Contract/Sponsored research work - Assistance for 50% of
the project cost, ceiling of Rs 50 lakhs.
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 Gujarat: Startup/Innovation Policy (2016-21)
Incentives for Startups
1. 100% Reimbursement on Stamp Duty and Registration Fee
2. Lease Rental Subsidy @INR 15/Sqft/month
3. Interest Subsidy @ 9% p.a. up to INR 2 lakhs/year
4. Patent Assistance @75% of cost up to INR 2 lakhs/patent for
Incentives for Incubators domestic & INR 5 lakhs/patent for international patent

1. Capital Assistance up to INR 50 Lakh 5. Bandwidth subsidy @70% of annual bandwidth charges up to

2. Operating Assistance up to INR 1 Crore per annum INR 20000 for 2 years

3. Assistance for procurement of software up to INR 1 6. skill certification grant of INR 5000/skill certification/person

crore/annum up to INR 1 lakh/annum/start-up for two years.

4. 100% Reimbursement on Stamp Duty and Registration Fee 7. Prototype/product development assistance of INR 1 lakh and

5. Power Tariff subsidy at the rate of INR 1 per unit in the billed Marketing assistance of INR 1 lakh per startup

amount 8. Additional 25% Equity support from GVFL up to INR 5 Cr. on

6. 100% reimbursement on electricity duty paid for 5 years same term of equity raised from registered venture capital

7. Mentoring assistance of INR 5 lakhs per annum funds

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Source: DST Gujarat: https://dst.gujarat.gov.in/startup-policy.htm

Digital Transformation with partnership

Center of Excellence for Internet of Things at IIT Gandhinagar

Creation of physical infrastructure labs in IoT domain for innovation,
development and validation of solution in collaboration with Government,
Industry and academia.
Focus on creation of prototypes for addressing the various domestic needs Agritech Robotics
in the field of IoT e.g. health, agriculture, water, transportation and energy.

Startup Warehouse
Concept of creating a micro-ecosystem for startups and entrepreneurs to
work together and share learnings with each other to solve the problems Healthtech Industry 4.0
faced by society, consumers and businesses.
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Source: DST Gujarat, https://gujarat.coe-iot.com/

Existing Companies in Gujarat

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 Startup Ecosystem in Gujarat
• Gujarat recognized as the best performer as per the state’s startup ranking 2018. 1000+ Startups Supported by
• Emerged as leader for startup policy and implementation framework. Government of Gujarat
In the field of AI, Cloud, Computer
• Gujarat Startup Portal provides comprehensive information starting from various
Vision, Robotics & IT Services etc.
approval, mentorship, financial assistance, marketing till exit from the business.
• State has successfully developed large incubation facility at iCREATE, Ahmedabad. 122 Incubator/Nodal institutes
The 1,12,139 sq. ft. incubator provides working space, library, digital innovation Approved by Government of Gujarat
center, design center, rapid prototyping using 3D printer, among other facilities.
180+ Approved Innovators
Approved by Government of Gujarat

Startup Support Policies

1. Student Startup & Innovation Policy
(2013/ Education Department)
2. Assistance Scheme for Startups and
Innovations (2015/ Industries &
Mines Department)
3. Electronics & IT/ITeS Startup Policy
(2016/Department of Science &
Technology)
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Source: Startup Gujarat, Startup India

 Gujarat: Education & Skill Development
Provisional Intake in Engineering &
Technology Courses in Gujarat (Year 2019)
Computer
11000+
Indian Institute of Information Technology Vadodara (IIIT-V) is
established by the Ministry of Human Resource Development (MHRD),
Government of India under Public Private Partnership (PPP) as
Information Institute of National Importance with a view to develop
knowledge & manpower of global standard in
Technology
information technology
5200+
Courses: B. Tech., M. Tech., Ph. D.
Specialization: Computer Vision, Graphics and
Multimedia, Data Analytics, Signal and Information
Processing

Indian Institute of Technology Gandhinagar (IIT-G) is established with

the goal to build and develop a world-class institution for creating and
imparting knowledge at the undergraduate, post graduate and doctoral
levels.
Courses: B. Tech., M. Tech., Ph. D.
Specialization: Computer Science & Engineering has
core areas of algorithms, complexity theory, machine
learning, data mining, data science, cryptography,
Dharamsinh Desai
Gujarat Technical University network security, computer vision and graphics, and
University
computer architecture 16
Source: Admission Committee for Professional Courses (ACPC), DTE Gujarat, Indian Institute of Information Technology Vadodara
 Ease of Living
01
Healthcare
• 25+ Multispecialty hospitals and 2647 Health and Wellness Centers
• Preferred medical tourism destination with no waiting time & affordable cost
• Super specialties hospitals for cardiology, neuro surgery, orthopedics & eye surgery

02
Public Transport
• 1.5 Lakh km of road network.
• 5000 km of railway route and upcoming High Speed Rail
• 19 airports including 2 international airports

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Smart Cities
• 6 Smart Cities
• Ahmedabad awarded ‘India’s Cleanest Big City’

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Recreational activities
• ~40 Hotels of 5/4-Star category, 34 Heritage hotels & 190 Resorts
• 4 Five Star Hotels and 1 Four-Star Hotel with Liquor License*
• 8 Golf Courses
Tourism Attractions
05 • Diversified tourism; The Statue of Unity - World’s Tallest Statue, Spiritual - Buddhist
Circuits, Nature, Wildlife, Arts & UNESCO world heritage
• Prominent festivals; Kite Festival, Rann-Utsav and Navratri etc.
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Note: Government of Gujarat issues online liquor permits to foreign tourists and NRI's during their visit to Gujarat (http://eps.gpeonline.co.in)
Investment Opportunities
Advantage Gujarat
Internet of
Things • Promising Investment Hub of India with well established
(IoT) industries such as Automobiles & Auto Components, Textile,
AI/
Machine Robotics Chemicals, Drug & Pharmaceuticals, Agro & Food processing
Learning
Big Data/ and Energy & Petrochemicals etc.
Data
Analytics • Innovative Information Technology transformed the
Cyber Web content business as usual and brought new opportunities such as:
Security development
 Use of AI, IoT & Security in Automobile industry
Data
Center  Robotics in Manufacturing & Industrial Automation

IT/ITeS  Data collection and Analytics for Pharmaceutical

KPO/BPO
Parks industry
Software &
Application  IoT and Robotics in Agro & Food processing and Energy
Development & Petrochemicals industry
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Connect for more
Information
Department of Science & Technology
Block No.7, 5th Floor,
New Sachivalaya, Gandhinagar,
Gujarat, India - 382 010
https://dst.gujarat.gov.in/
Phone: 91-79-23259999
E-mail: secdst@gujarat.gov.in

Gujarat Informatics Limited

Block No. 2, 2nd Floor, C & D Wing,
Karmayogi Bhavan, Sector - 10 A,
Gandhinagar, Gujarat. India - 382010
https://gil.gujarat.gov.in/
Phone: 91-79-23256022
E-mail: mdgil@gujarat.gov.in

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