Telecommunications

This sector has grown exponentially the last couple of years, just like the other sectors in the ICT industry. Every month, millions of new users are entering the market which caused the total sector to quadruple within 8 years to U$40 billion. In the wireless market new technologies like 3G and BWA are the most important. These technologies provide opportunities to expand the Value Added Services (VAS) and to integrate the currently separate parts of the telecom industry. Due to recent improvements in landline infrastructure, there is high potential in the expansion/exploration of cabled networks.

For the entire industry, the highest business potential is found in the rural areas of India. Low telecom density allows Western companies to participate in infrastructure developments in these areas. The Indian government also tries to contribute herein by investing in a number of projects in the rural areas. Furthermore, the government tries to stimulate growth through favorable regulations, such as 100% FDI in manufacturing and 75% FDI in services

Information Technology

This sector has grown exponentially this year. Initially, this growth was attributable to rising exports. However, the last couple of years were characterized by a fast growth in the domestic IT market which surpassed the growth in exports in 2008. An important development within this sector is the rise in registered domain names which implies a growing focus on e-commerce. The biggest investment opportunities are in the fields of developing software and improving the digital infrastructure. Innovation and R&D are crucial and the highly educated and English speaking population of India is especially appropriate for this. The highest potential is in the rural areas, but the growing middle class in the urban areas also offers many opportunities. Because of the increase in wealth in this class, the demand for high-end products is quickly growing. Currently, the IT sector contributes 7% to the Indian GDP.