Gujarat IT sector attracts 35,200 cr in 2015-16: Assocham

Ahmedabad, Jan 3 (IANS) The total outstanding investments attracted by Gujarat in the information technology (IT) sector increased to over Rs 35,200 crore ($5 billion) in 2015-16 from a meagre Rs 700 crore in 2005-06, a top industry body said on Tuesday.

According to the data analysed by the Assocham Economic Research Bureau (AERB), the sector grew at a compounded annual growth rate (CAGR) of about 48 per cent in the state during the decadal period.

"The total outstanding investments attracted by Gujarat in the IT sector may cross Rs two lakh crore by financial year 2020-21 from the level of over Rs 35,000 crore attracted by the state as of FY 2015-16," the industry body said in an IT sector specific investment analysis.

The industry body further pointed out that the total outstanding investments attracted by the IT sector across India had grew at a CAGR of just over 17 per cent, thereby increasing from about Rs 46,280 crore to over Rs 2.2 lakh crore as of 2015-16.

"Gujarat government must create a more vibrant IT ecosystem, more so as growth of IT will boost the overall development across the state and further perk up it's already strong manufacturing base," said D.S. Rawat, Secretary General of Assocham.

"Uninterrupted power supply, streamlining regulatory process at a single point together with speedy grant of approvals, clearances, permissions required to settle an industrial enterprise in a transparent manner also can go a long way in attracting investors in large numbers," Rawat added.

The industry body said the IT sector accounted for 2.5 per cent share in the total investments worth over Rs 14 lakh crore attracted by the state in different sectors from both public and private sources as of 2015-16.

"The sector's share has also increased from 0.2 per cent in the total investments worth about Rs 3 lakh crore attracted by Gujarat in 2005-06," it added.