The information and communications technology (ICT) sector has a strategic importance in India, given it is export-intensive in nature and has network externalities characteristics. Thus, it is critical to understand whether such externalities or spillover of ICT affects other industries of the economy in order to make informed policy decisions. This paper attempts to understand inter-industry linkage of the ICT sector. Input–output transaction table (IOTT) has been used to analyse the backward and forward linkages of the ICT sector. The findings reveal that the demand of ICT services as an input and supplier has huge potential to increase the total output and employment. There is vast scope to increase the integration of ICT with other sectors. Scope for policy and planning in India is still large, considering ICT’s strong backward and forward linkages with other sectors of the economy. Although ICT usage in other sectors of the economy has increased, it is still much lower compared to other developing and developed countries. In particular, improving domestic productivity and linking it with the national manufacturing policy and the recent “Make in India” initiatives and other polices of the government can improve the production of ICT goods and usages of ICT by other sectors of the economy.
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