According to the National Association of Software and Services Companies (Nasscom), the Indian technology industry is expected to grow by 8.4% in the fiscal year 2022-23 and become a USD 245 billion sector. This projection is based on the industry’s revenue of USD 226 billion in the previous fiscal year of 2021-22. However, the industry has suffered a 2% revenue growth reduction due to cross-currency headwinds.
Nasscom’s strategic review further highlights that the technology sector added 2.90 lakh new jobs, bringing the total number of employees to 54 lakh in the sector. The top-five companies in the industry have a robust deal pipeline of USD 18 billion, which is expected to contribute significantly to the sector’s growth.
The industry’s impressive growth prospects, however, are not without challenges. Nasscom president Debjani Ghosh identified some of the headwinds the sector is currently facing. One such challenge is the ongoing geopolitical tensions resulting from the Ukraine-Russia war. This situation has a direct impact on the technology industry, which relies heavily on global trade and investments.
Additionally, the sector is grappling with the employability gap, which remains a significant issue despite the industry’s steady growth. The gap arises due to a shortage of skilled professionals to meet the industry’s evolving demands, leading to a skills mismatch.
Despite these challenges, Ghosh remains optimistic about the industry’s future growth prospects. She cited a chief executives’ survey, which indicated that they are “cautiously optimistic” about the new fiscal. However, she acknowledged that it would be difficult to predict revenue growth in the fiscal year 2023-24.
The technology industry has played a crucial role in India’s economic growth, and its contribution is expected to grow further in the coming years. The sector has become an essential driver of employment, entrepreneurship, and innovation, and has cemented India’s position as a global IT hub. In fact, the industry is well on its way to becoming a USD 500-billion sector by 2030, according to Nasscom’s projection.
Nasscom’s strategic review underlines the critical role played by the technology industry in India’s growth story. The industry has emerged as a significant contributor to the country’s GDP and has opened up new avenues for employment and innovation. The review also highlights the challenges the industry faces, such as the geopolitical tensions and the employability gap, which will need to be addressed to ensure sustained growth in the sector.
The technology industry is poised for continued growth, with Nasscom projecting a steady increase in revenue in the coming years. Despite the headwinds facing the sector, it remains a vital contributor to India’s economy and is well-positioned to continue driving employment, entrepreneurship, and innovation in the years to come.
