India’s Information Technology (IT) sector has been witnessing remarkable growth over the past few years. In 2020, the Indian IT industry accounted for 8% of India’s GDP. Reports also show that exports from the Indian IT industry will likely increase by 1.9% - to $150 billion - in FY21.
Given this scenario, many retail investors in the country are showing increased interest in digital stocks in the market. If you’ve also been contemplating digital investment in the stock market, it helps to first understand this sector better. One of the key driving factors behind the growth of the IT sector is the Digital India initiative.
Digital India is a campaign that was launched in 2015, by the government of India to improve the digital and online infrastructure in the country. The campaign aimed to promote the provision of government services electronically to citizens. As a part of this initiative, the government planned to improve connectivity in rural areas with facilities like high-speed internet.
Three core areas have been identified as a part of the Digital India initiative.
The rising need for IT solutions backed by government schemes like Digital India have put the IT sector in the spotlight. So, if you want to invest in this sector, here’s a brief overview of the companies behind the key IT stocks or Digital India stocks to watch out for.
India’s largest IT company, Tata Consultancy Services offers a wide range of IT services. Its international presence is another strength that keeps TCS ahead of the game. If you are looking to diversify into the IT sector, this is one of the large cap companies to consider.
2. Infosys Ltd.
Infosys follows close on the heels of TCS, making it another strong contender that finds a place in the top Digital India stocks to keep an eye out for. Infosys also has a strong global presence.
Wipro provides IT and consultancy services, making it another big player in the Indian IT sector. The company has also been recognized internationally as one of the top IT service providers, making it a key player in the Digital India we’re moving towards.
4. HCL Technologies
HCL is another multinational company that has made it to the top stocks in the Information Technology sector in India. The company also operates across a number of other sectors defense, automotive, chemical and process industries, healthcare, logistics & hospitality.
5. L&T Infotech
Larsen & Toubro offers IT services like testing, analytics, security and infrastructure solutions. All of these services are key to bringing the Digital India dream to life.
So, this should give you a good idea of the stocks and the companies in the IT sector, which is inextricably linked to the Digital India initiative. To take advantage of the potential in this sector, you can get started with online stock trading by opening a demat and trading account online.
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