The Indian technology sector is set to reach $245 billion in FY23, despite the global headwinds. While there is a “cautious optimism” for FY24, the industry is on track to hit $500 billion by 2030, according to estimates by industry apex body Nasscom.
The growth in FY23 reflects an incremental net revenue addition estimated at $19 billion. The current financial year has been one of steady growth, even though it reported a 2% cross-currency impact. The growth has been across segments of IT services, business process management, software products, engineering research & development (ER&D) and domestic market, Nasscom said in its Strategic Review 2023.
The sector had recorded revenues of $226 billion in FY22.
Mirroring the trend, the Indian services export revenue is expected to touch $194 billion in reported currency, a growth of 9.4% compared to FY22.
Over the past year, India has shown resilience and continues to be the fastest-growing large economy in the world. Similarly, the country’s technology industry has also exhibited a continued revenue growth and is expected to grow in double digits in constant currency terms in FY23.
“FY23 has been another growth year for the industry creating impact for the country and all our stakeholders. Despite global headwinds and some moderation in demand, the industry value proposition of resilience, agility and a transformation partner for global enterprises, enabled the industry to strengthen its leadership in core and emerging areas,” said Krishnan Ramanujam, chairperson at Nasscom.
The country’s digital infrastructure also played a key role in driving domestic tech adoption. With continued investments by the government and enterprises in emerging technologies, India’s domestic sector emerged as the great propeller. Domestic revenue is growing 13% from FY22 in rupee terms, with a significant uptick in digital spending amongst Indian enterprises. The growth came from core sectors and markets such the US, Asia Pacific, BFSI, manufacturing, healthcare, while lower growth was registered from Europe, travel and utilities, said Debjani Ghosh, president, Nasscom.
India is a global hub for talent, she said, adding the industry continues to be the net employer with over 5.4 million work force, creating 290,000 new jobs in FY23. With a 36% digitally skilled workforce, the industry remains on the top in terms of artificial intelligence skills penetration, the second-largest in terms of artificial intelligence, machine learning and big data analysis talent pool globally. It was also third in terms of installed supply of Cloud professionals.
With a total of 2 million women employees, the industry showcases a deep focus on bringing diversity to the workplace reporting a net addition of over 140,000 women employees during the year.
“In a no-normal environment that we are living in today, the industry focus continues to be on investing for growth. Propelled by forward-looking policies, strong governance, talent and digital trust to ensure accessibility, privacy, security, and reliability, the tech industry in India is on track to accelerate growth to $500 billion by 2030,” Ghosh added.
According to Ramanujam: “There is a cautious optimism for FY24. We will continue to grow, but the headwinds are still there.”
In the recent years, India has emerged as a global powerhouse for deeptech innovation capabilities and R&D, and is steadfastly committed to ushering future growth and innovation for global enterprises. Global capability centres (GCCs) have had a huge impact in making India a destination of choice for engineering R&D. About 40% of global GCCs are present in the country today, which demonstrates a tremendous opportunity for the country to scale up. India added 65 new GCCs in the year, taking the total to 1,570+.
The proportion of digital tech in the overall technology services revenue has rose to over 32-34% in FY23 from about 26-28% in FY20. In digital tech, analytics, cloud and cybersecurity are emerging as the fastest-growing segments, wherein the share of Cloud deals was reportedly four times of pre-pandemic levels.
The country has also emerged as a hotbed for deep tech startups in India, with it reaching a total of 3,000 in FY23. India added 1,300 new startups and 23 new unicorns in 2022.
Read More at https://www.financialexpress.com/industry/indias-tech-industry-set-to-reach-245-billion-in-fy23/2996774/