India's domestic market for computer services to grow faster than exports: Report

The domestic market for computer services in India is forecast to grow faster than their exports, fuelled by the government's Digital India programme and the country's burgeoning start-up environment, according to an UN report.

"The computer services industry in India is increasingly catering to the domestic market, leveraging expertise gained from exporting, while at the same time reducing an over-reliance on such exports," stated the report by the United Nations Conference on Trade and Development (UNCTAD).

Noting that India ranked fourth in terms of growth in the share of the ICT sector's value added in GDP between 2010 and 2017, the report said, "The domestic market for computer services in the country is forecast to grow faster than their exports, fuelled by the government's Digital India programme, its burgeoning start-up and venture capital scene and increased computer use by the MSMEs (Micro, Small and Medium Enterprises)."

The first-ever Digital Economy Report said the size of the global digital economy range from 4.5 to 15.5 per cent of world GDP.

Regarding value added in the information and communications technology (ICT) sector, the U.S and China together account for almost 40 per cent of the world total.

In terms of value added, the US has the world's largest ICT sector at about a trillion dollars, almost twice the size of the second largest, China.

The report further said that within the ICT sector, computer services are the largest component, with a 40 per cent share of total value added.

The global computer services industry is dominated by the U.S. Its share of the sector's value added is almost as big as that of the combined total of the next nine largest economies, the report said.