India’s tech industry is expected to create 2.9 lakh jobs in the fiscal year 2024, according to the Strategic Review report by the National Association of Software and Service Companies (NASSCOM), released on March 1. The report also stated that the industry’s revenue is set to reach $245 billion by the end of the 2024 fiscal year, showing an 11.4% growth in constant currency terms.
NASSCOM President Debjani Ghosh noted that the tech industry in India is on track to accelerate growth to $500 billion by 2030, propelled by forward-looking policies, strong governance, talent, and digital trust to ensure reliability, privacy, security, and accessibility.
The report highlighted that the tech industry is a net creator of jobs, and has the highest penetration of IT skills in the country. The industry is the second-largest talent pool for Artificial Intelligence/Machine Learning Big Data Analytics and ranks third in the installed supply of cloud professionals.
There are 20 lakh women out of the 54 lakh workers employed, according to the report. The industry has reported a net addition of over 140k women employees during the year, indicating a deep focus on bringing diversity to the workplace.
The growth was primarily seen in segments of IT Services, BPM, software products, ER&D, and in the domestic market. The estimated net addition in FY23 is higher than Pre-COVID levels, even as the net addition numbers of IT Services companies, some of the highest recruiters, have significantly declined.
Krishnan Ramanujam, NASSCOM chairperson, explained that FY21 and FY22 were atypical years, and using them as a baseline to compare the next year is not a fair comparison. However, he added that the growth is on the upswing from a pre-COVID perspective, and that technology is the solution to many problems faced by enterprises, governments, and humankind.
The report stated that the export revenue of the Indian services industry is expected to reach $194 billion, with an uptick in digital spending by Indian enterprises. Revenue from the geography has increased by 13% in rupee terms.
North America and the Asia Pacific markets are the major geographies that are witnessing growth, as per NASSCOM. The BFSI, manufacturing, and telecom spaces are the sectors that are driving growth.
The report outlined the tailwinds for the sector, stating that the top 5 tech companies have a robust deal pipeline of $18 billion and have seen roughly 10% growth in their client base in 2022 as opposed to the previous year. Enterprise tech spending is also on the rise, and there are margin levers with a 6-7% headroom in terms of utilization figures.
The current macroeconomic climate, the gap in employability for emerging tech roles, demand contraction in some markets, and emerging tech regulations are some of the challenges faced by the tech industry. Ghosh recommended that while the government cannot regulate technology overall, it should focus on regulating specific use cases.
The report also addressed the startup environment, stating that despite uncertainties, particularly the funding winter, startups focused on fundamentals and governance. Over 1,300 startups were added in 2022, bringing the total to around 27,000, and 23 unicorns were minted.
Of these 27,000 startups, 3,000 are deep-tech startups. However, Ghosh acknowledged that there needs to be more number of deeptech startups in the country. The proportion of digital tech in the overall technology services revenue has been increasing year after year, from only around 26-28% in FY2020 to over 32-34% in FY2023.
The Indian tech industry looks bright, and its continued growth and success will play an essential role in shaping the country’s economy and employment landscape.
Overall, the Nasscom report paints a positive picture of the Indian tech industry’s growth potential in the coming years, fueled by forward-looking policies, strong governance, talent, and digital trust. The industry is expected to create significant employment opportunities, particularly for women, with a net addition of over 140,000 women employees in FY23. While there are headwinds, including delayed decision-making due to the current macroeconomic climate and emerging tech regulations, Nasscom President Debjani Ghosh suggests that regulating specific use cases rather than technology as a whole is the way forward.
The Nasscom report suggests that India is well-positioned to accelerate growth in the tech industry, with a goal of reaching $500 billion by 2030. It remains to be seen how the industry will weather the storm clouds of macroeconomic and geopolitical risks, but Nasscom Chairperson Krishnan Ramanujam believes that technology is the solution to many of the world’s problems and that the industry is structurally well-placed for long-term success.
According to a recent report by the National Association of Software and Services Companies (NASSCOM), India’s technology industry is expected to create 2.9 lakh new jobs in the financial year 2024-24 (FY23).
According to a recent report by the National Association of Software and Services Companies (NASSCOM), India’s technology industry is expected to create 2.9 lakh new jobs in the financial year 2022-23 (FY23). This growth is due to the increasing demand for digital transformation across various sectors, including healthcare, education, and e-commerce.
The report also stated that India’s technology industry is expected to reach a market size of $350-360 billion in FY23, with a growth rate of 7.7-8.1%. The industry is expected to contribute around 10% of India’s gross domestic product (GDP) and provide direct employment to 4.5 million people and indirect employment to 10 million people.
The COVID-19 pandemic has accelerated the adoption of digital technologies, and the demand for digital services is expected to continue to grow in the coming years. The report highlights the need for upskilling and reskilling of the workforce to meet the industry’s demands for new and emerging technologies such as artificial intelligence (AI), cloud computing, and cybersecurity.
The Indian government has also taken several initiatives to support the growth of the technology industry, such as the Production Linked Incentive (PLI) scheme, which offers incentives to companies for increasing their production and exports, and the National Education Policy (NEP), which aims to promote technology and innovation in education.
Overall, the growth of India’s technology industry is expected to continue to contribute significantly to the country’s economy and employment opportunities.
