August 11, 2021
The contributing factors to the growth include the adoption of cloud computing and emerging technologies by IT firms and digitization by MSMEs, among others.
The highest growth with regard to the states was observed in Karnataka, Maharashtra and Telangana.
An estimated growth of 8-9 percent is being anticipated in the current financial year by the Software Technology Parks of India (STPI).
Companies registered with the STPI recorded a growth amounting to $USD 67.46 billion during 2020-21.
The Indian IT industry has exhibited resilience and remains buoyant despite the onslaught of the COVID-19 pandemic, as evidenced by its exports amounting to $USD 13.73 billion during the first quarter ending on June 30, 2021. This was further attested by Omkar Rai, Director-General of Software Technology Parks of India (STPI), who mentioned that despite the various disruptions brought by the pandemic, the industry delivered services and solutions to their clients across the globe. Currently, there are approximately 5,100 units registered under the STPI across the country. Adoption of cloud computing and emerging technologies by IT firms across verticals and swift digitisation by MSMEs (micro, small and medium enterprises) to increase their competency are among the various factors which contributed to this noticeable growth. While the quantum of exports being slightly lower than the previous year’s $USD 17.10 billion did raise some concern, Rai stressed on the fact that the current year was preceded by a pandemic unlike the same quarter in the previous year which had a normal year preceding it.
The sector is anticipating a growth in export at approximately 8-9 percent in the current financial year which the STPI believes would be driven by fintech, medtech, edutech and gametech in the remaining three quarters. The anticipated growth rate comes as a revision of the growth forecast by the STPI which had earlier predicted a growth at only around 5-6 percent. The revision in the estimated growth was fueled by rapid digital adoption and transformation across various sectors, given that the pandemic gave rise to the need for distance learning and facilities for employees to work remotely. These factors add to other growth drivers such as the adoption of technologies such as artificial intelligence, machine learning, blockchain, big data analytics, augmented reality and virtual reality by big businesses, leading to the STPI predicting a higher growth rate during the year. During 2020-21, companies registered with the STPI have recorded exports amounting to $USD 67.46 billion, exceeding the $USD 61.94 billion registered during 2019-20. The states of Karnataka, Maharashtra and Telangana recorded maximum growth at $USD 27.60 billion, $USD 13.3 billion, and $USD 11.41 billion, respectively.