Bangalore: India's Information Technology (IT) market (both domestic and exports) is projected to grow by a compounded annual growth rate (CAGR) of 27.9 per cent to reach Rs 1,96,105 crore in 2006, according to International Data Corporation (IDC).

The market research and consulting firm said it sees continued growth performance for the sector over the next four years.

According to IDC, the total Indian IT market witnessed a growth of 21 per cent to reach Rs 73,219 crore in 2002.

It also said the total domestic IT spending reached Rs 25,931 crore in 2002, a growth of six per cent over the previous year.

IDC expects the domestic sector to display a significantly enhanced growth performance of 16 per cent in the current year.

Domestic IT spending is expected to show growth with stability over the next four years, displaying a CAGR of 21 per cent with total it spend to reach Rs 55,925 crore in 2006, the firm said.

Noting that exports (hardware, IT services and ITES) continue to be the main drivers of growth for the Indian IT industry, it said the share of exports in the total IT market is expected to increase to 71 per cent in 2006 from the current level of 65 per cent.

PTI