"Despite India's IT export prowess, there is an alarmingly low internal consumption of technology as about 80 percent of software produced in the country is being exported. We have discovered that despite documented evidence proving the benefits of technology, investment in manufacturing and domestic businesses still have low adoption rates. This is a result of inadequate access to power, lack of human resources, hesitancy to invest in IT firms due to financing concerns and low momentum among other industry players," says the study.

John Atkinson, managing director, LexisNexis Butterworths, said, "The study provides evidence on IT penetration fuelling profitability in the economy. IT enables 32 percent change in value addition."

The study also provides evidence that investment in information technology makes the domestic companies to become larger employers and better wage payers with less working hours. However, the demand for less skilled and skilled workers increases 30 and 35 per cent, respectively, with IT use.