Things To Know Before Setting Up An IT Company In India
Over the years there have been exponential breakthroughs in the field of technology around the world and India is no exception to it. The Information Technology sector in India has increased manifold leading to radical transformations in the fields of healthcare, education, transportation, etc. India’s IT industry contributes about 8% to the GDP of the country and is expected to contribute around 10% by 2025. It is one of the fastest-growing sectors of the Indian economy. India holds the largest market share in global services sourcing industry and has become the second largest tech start-up hub of the world.
If you are planning to set up an IT company in India, these are the things that you should know-
- The process of setting up an IT company is the same as setting up any new business in India.
- With over more than 17,000 firms in the IT industry, India is emerging as the nucleus for “Digital Skills”.
- The services provided by the Indian IT companies is 3-4 times more cost-efficient as compared to that of U.S.
- India ranks second in the world when it comes to the number of internet subscribers with over 450 million subscribers.
- Up to 100% FDI is allowed in data processing, software development, computer consultancy services, software supply services, technical testing and B2B E-commerce.
- Information Technology has been identified as one of the 12 champion services by the GoI.
- 100% tax deduction is allowed to start-ups in respect of eligible businesses which involve innovation and technology.
- The share of IT services in exports is more than 45%.
- With around 75% of global digital talent present in the country, India has become the hub of global digital capabilities.
- In the Interim Budget 2019-20, the GoI announced plans of setting up of a National AI portal.
Minimal government interference and growth-driven incentive policies has made the IT sector as one of the top sectors in the country. The various initiatives by the Government such as Digital India, Atal Innovation Mission, Smart cities, Government e-market place, etc and increased levels of cybersecurity have paved the way to a more optimistic future for the IT industry in India.