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Published: Mar 03, 2023
Updated: Mar 03, 2023

India's Tech Industry Expected to Reach $245 Billion in FY23: Nasscom

According to estimates by industry apex body Nasscom, India's technology sector is set to reach $245 billion in FY23, despite global headwinds. The current financial year has been one of steady growth, with an incremental net revenue addition of $19 billion. Nasscom predicts that the industry will hit $500 billion by 2030, reflecting a continued revenue growth of double digits in constant currency terms in FY23.

Growth Across Segments

The growth has been across segments of IT services, business process management, software products, engineering research & development (ER&D), and the domestic market. The Indian services export revenue is also expected to touch $194 billion, a growth of 9.4% compared to FY22. Debjani Ghosh, president of Nasscom, said that the growth came from core sectors and markets such as the US, Asia Pacific, BFSI, manufacturing, and healthcare.

The Role of Digital Infrastructure

India's digital infrastructure 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 among Indian enterprises.

India: A Global Hub for Talent

India is a global hub for talent, with over 5.4 million workforces creating 290,000 new jobs in FY23. The industry showcases a deep focus on bringing diversity to the workplace, with a total of 2 million women employees. In a no-normal environment, the industry focus continues to be on investing for growth.

Future Growth and Innovation

According to Nasscom Chairperson Krishnan Ramanujam, "There is cautious optimism for FY24. We will continue to grow, but the headwinds are still there." India has emerged as a global powerhouse for deeptech innovation capabilities and R&D, with about 40% of global GCCs present in the country today. India added 65 new GCCs in the year, taking the total to 1,570+. The country has also emerged as a hotbed for deep tech startups in India, reaching a total of 3,000 in FY23, with 1,300 new startups and 23 new unicorns added in 2022.

IT industry continues to exhibit consistent growth

The Indian technology industry continues to exhibit a continued revenue growth, with cautious optimism for FY24. The growth has been across segments of IT services, business process management, software products, engineering research & development (ER&D), and the domestic market. India's digital infrastructure played a key role in driving domestic tech adoption, and the country remains a global hub for talent. Nasscom predicts that the industry will hit $500 billion by 2030, reflecting a continued revenue growth of double digits in constant currency terms in FY23.