Indian Government spends on IT

Gartner estimates the Indian government spent US$ 1.008 billion on IT in 2002. This includes hardware, software, telco equipment, telco services, and IT services, but excludes salary costs of IT staff. The government accounted for nine percent of the total IT spend in India for the year 2002, emerging as the fourth largest vertical spender on IT in the country.

Gartner stated that the government was the only 'recession-proof' vertical that could keep up the momentum in IT-spend despite a downturn in the country's economy. 12 Indian states already have an IT policy in place. Besides, the government's directive of keeping aside 2 percent of each state department's budget for IT purchase has been instrumental in driving IT penetration in government offices.

Mapping India's progress on eGovernment to counterparts within the region, the country is on par with China, Japan, Malaysia, Pakistan, and Philippines. The most evolved countries and leaders of e-government include Singapore, Taiwan, Hong Kong, Australia, and New Zealand.