The National Association of Software and Service Companies (Nasscom) projects a modest 3.8% growth in India’s technology sector revenue to $253.9 billion for the current fiscal year, a deceleration from the previous year’s 8.4% increase.
This deceleration stems from restrained client spending and delayed decision-making. The industry anticipates lower to mid-single-digit growth in all areas, including software products, BPM, IT, and R&D.
Software exports declined by 3.3% to $199 billion, contrasting sharply with the 11.4% growth observed earlier. It is anticipated that job growth will drastically decline by 80% to 60,000, in sharp contrast to the 290,000 jobs generated in the prior year. However, the total workforce of the industry increased slightly, from 5.37 million to 5.43 million.
For the fiscal year, Nasscom does not reveal the precise revenue distribution breakdown, citing uncertainty and slow decision-making.
Senior Vice President of Nasscom Sangeetha Gupta notes a major “correction in spending” following COVID-19 and links income stagnation to postponed projects. Although the pandemic sped up digital investments in industries like finance and retail, the momentum slowed down because of uncertainties in the world economy. As US recession fears diminish, Nasscom’s president, Debjani Ghosh, sees a “reversal” in sentiments by 2024.
