India's IT-BPO sector has rapidly expanded, contributing significantly to export earnings, investment, and employment. Factors such as competitive labour costs, English proficiency, and technical expertise have fueled this growth.
Industry growth averaged 31% annually, employing about two million people with 24% employment growth. Top IT firms: Tata Consultancy Services, Wipro, Infosys, IBM India. Top BPO firms: Genpact, WNS Global, TCS BPO.
Demand Factors include: (i) Economic conditions in export markets, (ii) Competitiveness of other providers, (iii) Domestic outsourcing demand.
Supply Challenges include: (i) High attrition (60% employees < 1 year tenure), (ii) Wage inflation, (iii) Skill shortages. Pay was rising to reduce attrition.
Due to liberalisation and deregulation, India's telecom sector evolved into a competitive market with declining prices and rapid growth. Phone subscribers grew at 43% CAGR since 2004, with mobile phones accounting for 93% of total connections.
Leading companies include: Bharti Airtel, Vodafone Essar, Reliance Communications, BSNL, MTNL, Tata Teleservices, Idea Cellular, Loop Mobile, and others.
Despite a 24% annual growth in subscribers, India’s Internet penetration remains low at 1.5% (2011). Growth driven by residential broadband, increasing from 135,000 in 2004 to 8.1 million in 2012 (CAGR 153%).
Barriers: (i) High poverty levels, (ii) Low computer ownership. Top ISPs by market share: BSNL (56%), MTNL (15%), Airtel (8%), Reliance (8%), Hathaway (2%).
India is the 5th largest electricity producer. Production surged in the past decade, but demand outpaced supply, causing power shortages and frequent outages.
Issues: (i) Poor national transmission, (ii) 26% electricity lost to distribution (twice Pakistan's output), (iii) Low per capita consumption, especially in rural areas.
Consequences: Damaged equipment, business losses, reliance on diesel generators.
India’s air passenger sector is small (2% global share), carrying 61 million passengers yearly (80% domestic). Revenues ~$9B; ~60,000 employed.
Growth slowed by financial crises, yet long-term demand remains due to youth population. Major carriers: Air India, SpiceJet, Jet Airways, Indigo, Kingfisher, Go Airways.
As of 2011, India had 563 universities (44 Central, 285 State, 129 Deemed, 106 Private), but quantity and quality lag behind demand.
Only a small elite produces graduates fit for global roles. Most colleges lack funds, flexibility, and autonomy. Hence, many students go abroad for higher studies.
Only 13% of 18–24-year-olds had sufficient education for higher studies. The 12th Five-Year Plan (2012–17) increased emphasis on higher education.
Accounting for 5.5% of GDP, the Indian financial sector employs ~1 million people, with potential to reach 2.5 million by 2020.
India’s growth and middle-class expansion boost financial demand. However, less than half of household savings enter formal financial systems.
Resilience during global crisis: Indian banks had little subprime exposure. Regulators remained conservative; government supported state banks.
Top 10 commercial banks: SBI, ICICI, PNB, Bank of Baroda, Bank of India, Canara Bank, IDBI, HDFC, Union Bank, Central Bank of India.