In this age of computers, the development and advancement of the information technology sector can push a developing economy into the developed countries category. The present study found that the IT sector of India has experienced boom and prosperity during the first decade of this century. Therefore, the supportive policies and acts, such as the Information Technology Act, 2000, National Broadband Policy, 2004, and Special Economic Zones Act, 2005 have favourable impact on the information technology sector. Meanwhile, it is moving towards recession in the second half of the second decade of this century. However, the study confirms good performance of India’s information technology sector in terms of its contribution to the gross domestic product, foreign exchange earnings, and employment generation in the Indian economy.
