The Indian IT sector is doing exceedingly well and will sustain the momentum in the coming years as well. India is gaining share from other parts of the world. The IT sector saw phenomenal growth in FDI in 2005 with $6.5 billion of investment. The total investment in IT bypassed the India's ITeS (IT enabled services) exports in 2004 ($5.7 billion) and was 48.3% of total IT exports
Business process outsourcing is another segment that is scripting its own success story, similar to the software sector. BPO along with software sector is expected to be the biggest employment creators in the coming years.
100% FDI is allowed in IT / software / BPO sector and there are numerous tax benefits for such companies under various schemes.