You asked: WHY IT industry has been a major foreign exchange earner in recent years?

Why is information technology industry a major foreign exchange earner?

The IT industry has been a major foreign exchange earner in the last few years because of its fast growing Business Processes Outsourcing (BPO) sector. The continuing growth in hardware and software is the key to the success of IT industry in India.

Which industry has been the major earner of foreign exchange in the recent years?

The industry that has earned our country a major, sizeable share of foreign exchange, is the Information Technology industry. In the last two decades, the contribution to India’s GDP from Information Technology, has grown by 6.5%.

Which industry has a major foreign exchange earner in the last few years?

Answer: In recent years, India is earning large foreign exchange through the export of information technology. The information technology in India is comprised of two-component, viz., Business Process Outsourcing (BPO) and IT services.

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Which industry consider as the major foreign exchange earner?

TOURISM is not only the world’s leading service sector but also considered to be an important foreign exchange earner around the world.

What is the significance of IT industry in India?

A major impact of this industry in India has been on employment and generation. Information technology industry or it as it popularly known specialises in research and development, manufacture of electronics and production of hardware and software.

Which of the following has been the major impact of IT industry?

The impact of IT and Electronic Industries are: (i)A major impact of this industry has been on employment generation. … (ii)This industry has been a major foreign exchange earner in the last two or three years because of its fast growing Business Processes Outsourcing (BPO) sector.

What are the reasons for growth of service sector in India?

Several factors have contributed to the growth of this sector in India. These include growing affluence, improving status of women, growth of IT sector, development of markets, health care consciousness, opening up of the economy etc.

What are the reasons for growth of service sector in India UPSC?

The reasons behind the development of the services sector are increasing urbanisation, privatisation, more demand for intermediate and final consumer services, availability of quality services, etc.

Which of the following items is the highest foreign exchange earner in India?

In FY19, India’s engineering export stood at US$ 81.02 billion and for FY20, it stood at US$ 75.97 billion. Engineering contributes 25% of India’s total exports in goods and is its largest foreign exchange earner.

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Why do you need to study foreign exchange market?

Foreign Currency rates fluctuate based on the market forces of demand and supply. … This means the rates can change at any given moment. We need a foreign exchange market to determine a value for each foreign currency and this would make it easier to exchange different currencies for one another.

What is the significance of the foreign exchange market?

The foreign exchange markets play a critical role in facilitating cross-border trade, investment, and financial transactions. These markets allow firms making transactions in foreign currencies to convert the currencies or deposits they have into the currencies or deposits they want.

Why is foreign exchange important?

Foreign exchange is the trading of different national currencies or units of account. It is important because the exchange rate, the price of one currency in terms of another, helps to determine a nation’s economic health and hence the well-being of all the people residing in it.