Indian tech industry’s revenue to reach $245B in FY23, adds 2.9 lakh new jobs: NASSCOM

The Indian technology industry is projected to end the current fiscal with a revenue of $245 billion, with the addition of 2.9 lakh new jobs, according to the strategic review by NASSCOM.

The technology industry added $19 billion in incremental revenue in FY23 compared to FY22, and this growth has come despite the economic slowdown in key markets of North America and Europe.

The export segment—the mainstay of the technology industry—is set to close the current fiscal with a revenue of $194 billion—a 9.4% growth compared to last fiscal.

ALSO READ

Digital sector to contribute 25% of India’s GDP by FY29: K V Kamath

According to NASSCOM, the industry is ready for a “No Normal” future, as uncertainties in the macro-political and economic headwinds loom.

"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,” NASSCOM Chairperson Krishnan Ramanujam said.

The growth has been across IT services, BPM, software products, ER&D segments, and the domestic market.

The industry continues to be the net employer, with over 5.4 million workforce, creating 290,000 new jobs in FY23.

According to NASSCOM, with a 36% digitally skilled workforce, globally, the industry remains on the top in terms of AI skills penetration, second largest in terms of AI/ML BDA talent pool, and third in terms of installed supply of cloud professionals.

Women constituted around two million employees of the overall workforce, with a net addition of 140,000 during the fiscal.

“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 billion by 2030,” NASSCOM President Debjani Ghosh said.

The proportion of digital tech in the overall technology services revenue is increasing annually. From around 26-28% in FY20 to leapfrogging to over 32-34% in FY23, there is increasing penetration of digital tech in the industry.

According to a McKinsey CIO survey, 75% of CIOs expect spending on digital to continue with evolving priorities as per changing macroeconomic environment.

With evolving buyer preferences, tech service providers are increasingly pivoting to transformational partners over vendors to bring domain specialisation and impact-based commercial arrangements.