According to the Economic Survey of India 2019-20, the IT-BPO sector played a significant role in contributing nearly 162 billion USD (2018-19) to India’s economy. Cities like Hyderabad, Bengaluru, Noida, Gurgaon, and Pune emerged as thriving IT hubs, positioning India as a global epicenter for IT industries and generating new employment opportunities.


  • Enhanced job creation: Shifting industrial operations to meet the demands of overseas clients has resulted in a substantial increase in recruitment.
  • Ancillary benefits: The growth of the IT industry has positively impacted several small-scale industries, such as facility management, third-party security providers, maintenance services, accommodation, and construction.
  • Indirect boost to other sectors: Skill development institutions, the automobile industry, and the e-commerce sector have experienced indirect benefits from the expansion of the IT industry.

Challenges and Instances:

  • Urbanization challenges: Rapid urbanization has led to resource shortages, governance issues, and imbalances. Cities like Bengaluru and Surat are grappling with severe water shortages, while municipal corporations face deficits in resources and staff shortages.
  • Real estate price escalation and population influx: The influx of migrants has resulted in increased demand for housing, driving up real estate prices. The demand for services such as drivers, cooks, and domestic help has also contributed to population growth.
  • Air and water pollution: The use of personal vehicles and modern electronic luxury equipment, such as air conditioners, refrigerators, and coolers, has led to air pollution. Additionally, increased industrial activity has resulted in water pollution, as seen in the deteriorating water quality in Noida.
  • Biodiversity threats: Rapid urbanization poses a threat to biodiversity through deforestation and the harmful impact of communication tower radiation on birds and other creatures.

Conclusion/Way forward:

By adopting an eco-friendly and well-planned approach that addresses these challenges, India can work towards achieving the objectives of Sustainable Development Goals. This includes the eradication of poverty, reduction of unemployment, and the creation of a well-balanced environment.

Legacy Editor Changed status to publish January 6, 2024