Indian tech industry set to reach $245 bn in FY23: Nasscom

Indian tech industry revenue is set to grow to $245 billion in FY23 in reported currency terms, according to IT industry body Nasscom. It would mean an incremental revenue of $19 billion over FY2022. This takes into account the cross-currency impact of 2%. Export revenue is also set to rise by 9.4% to $194 billion from $177 billion in the last fiscal.

According to Nasscom’s annual strategic review report, in spite of the global headwinds, the tech industry saw its exports grow in the US market by 10.4%, while APAC at 10.1%.

Krishnan Ramanujam, chairperson, Nasscom said, “FY2023 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.”

The insights from McKinsey’s CIO survey, which is part of the report, state nearly 75% of CIOs are hopeful of the spending on digital to continue in FY 24 and companies are now looking to bring to the table domain specialisation and impact-based outcomes for their clients rather than just being vendors.

Indian tech industry’s net hiring could well surpass pre-Covid levels with an estimated 5.4 million people employed, and a net addition of 2.9 lakh in this fiscal. With nearly 25 (tier 2/3) hubs and the industry attrition seeing a decline from 25.7% in Q1FY23 to 21.8% in Q3FY23, Nasscom sees the improving talent metrics as a positive. “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 bn by 2030,” said Debjani Ghosh, president Nasscom.

Given the different macroeconomic dynamics playing out in various regions, Nasscom sees inflation, the economic uncertainty leading to a delayed indecision-making of clients, along with demand contraction in some markets, and changing tech regulatory landscape could pose as a challenge to business growth.