New Delhi, Apr 11: Catching up fast with the exports, the domestic Indian market for the IT industry is estimated to have grown upto 4.3 billion dollars for the fiscal 2005-06 from 3.5 billion dollars in the previous year, a Nasscom survey has said.
The annual survey of 300 companies across various domestic user industries indicated the trend among IT vendors to increase their focus on the domestic market.
It said that the domestic IT is placed at the base of a steep adoption curve.
''Increasing IT usage and adoption within the country is enhancing competitiveness of the Indian economy and the user community. Today, we see Indian businesses becoming increasingly competitive in the global market, using IT as a key enabler, said NASSCOM President Kiran Karnik.
''Also, the user industry in India is outsourcing parts or entire IT infrastructure to specialized vendors, which requires world class standards, and best practices,'' he said.
''While there is increased IT adoption by user organisations in the country, both at an operational and advanced levels, the ongoing phase of investment by the industry will need a gestation period to exhibit its full potential, thereby achieving the maximum return on Investments by organisations,'' he added.
The industry will need to continue the existing focus on sustaining this growth curve through investments and adoption, he said and added that ''we hope the government will also become a major user of IT through the e-governance programme.'' A favourable policy and taxation regime will give a boost to greater IT usage in the country with benefits to efficiency, productivity and employment.
Recognising the growing importance and potential of the domestic market, NASSCOM has been focusing on this segment.
A milestone in this direction has been the creation of the Domestic IT Market Committee, and the commissioning of an in-depth analysis of the Domestic Services (IT-ITES) market opportunity report, in 2006.
NASSCOM has also announced the winners of the 'India IT User Awards 2005'.
The awardees include best IT User in Non Governmental Organisation - CHETNA, Best IT User in Education -Indian Institute of Management, Bangalore, IT Innovation in Emerging Companies - Yes Bank, Best IT Infrastructure in Healthcare - Fortis Healthcare Limited, Best SCM user in Manufacturing - Mahindra&Mahindra Ltd, Best SCM user in Pharmaceutical - Torrent Pharmaceuticals Ltd, Best SCM user in Oil&Petrochemical - Bharat Petroleum Corporation Limited.