March 2, 2023
The Indian technology sector is predicted to grow by 8.4% in FY2023
The sector earned US$ 226 billion in FY2022
The sector has added 290,000 new jobs, bringing the total number of employees to 5.4 million
Gartner predicted a 2.6% increase in IT spending by businesses in India for 2023
The Indian technology sector is predicted to grow by 8.4% in FY2023, reaching a total size of US$ 245 billion, according to a report from The National Association of Software and Service Companies (Nasscom).
The report revealed that the sector earned US$ 226 billion in FY2022. Experts stated that the sector has added 290,000 new jobs, bringing the total number of employees to 5.4 million. Despite global headwinds, the industry is expected to exhibit strength and resilience and reach US$ 500 billion in growth by 2030. Sectors such as banking financial services and insurance, manufacturing, and telecom have shown maximum resilience in the current fiscal year.
Domestic revenue for the technology sector is growing by 13% from FY22, due to a significant increase in digital spending among Indian enterprises. The industry remains a net employer, with over 5.4 million workers, including over two million women employees.
The report noted that there has been a significant increase in the penetration of digital technology in the industry, with Analytics, Cloud, and Cybersecurity emerging as the fastest-growing segments. The industry currently has a 36% digitally skilled workforce, ranking as the top industry globally in terms of Artificial Intelligence (AI) skills penetration, and second and third globally in terms of AI/ML and big data analytics talent pool and installed supply of cloud professionals, respectively. The share of Cloud deals has also reportedly increased fourfold from pre-pandemic levels.
A report published by Gartner in November 2022 predicted a 2.6% increase in IT spending by businesses in India for 2023 and despite global macroeconomic challenges, Indian businesses will continue to increase their spending on key segments of information technology.