Electronics and Information Technology is the fastest growing segment of Indian industry both in terms of production and exports. Today, the electronics industry is completely delicensed with the exception of aerospace and defense electronics, and along with the liberalization in foreign investment and export-import policies of the entire economy, this sector is attracting considerable interest not only as a vast market but also as potential production base by international companies.

In recent times, ‘software development and IT enabled services’ have emerged as a niche opportunity for India in the global context. The Government is taking all necessary steps to make India a Global Information Technology Superpower and a front-runner in the age of Information Revolution. The Government has announced promotion of Information Technology as one of the five top priorities of the country and constituted a National Task Force on Information Technology and Software Development.

During the year 2002-03, electronics exports were estimated at Rs. 53,100 crore as compared to Rs. 42,300 crore in 2001-02, showing a phenomenal growth of 26 per cent. The computer software and services exports have increased from Rs. 36,500 crore during 2001-02 to Rs. 47,500 crore during 2002-03, implying a growth of 30 per cent.