India's Information Technology sector that constitutes about 3.5% -4% of the country's Gross Domestic Product is likely to post a single- digit growth, as measured in GDP calculations, for the first time in the fiscal year 2008-09, reported the Business Standard quoting a senior government official.
The IT sector grew at an average rate of about 25% in three years till March 2008 and the decline in its growth is cited as a reason for the plunge in the economy in fiscal year 2009. According to an official of the statistics ministry, though IT sector constitutes a small part of GDP, its growth rate matches with that of agricultural sector.
Nasscom, the National Association of Software and Services Companies estimates that the software services segment, which constitutes over 80% of the IT industry would report 15% growth in fiscal 2009, compared with 32% in the previous fiscal, due to the adverse economic environment. However, the entire IT industry is anticipated to grow at a much lower rate of 12% in fiscal 2009 at $71.7 billion.
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