Indian IT industry revenues to touch $254 billion with 3.8% growth in FY24, says Nasscom

The domestic technology industry is set to witness a revenue growth of 3.8%, reaching $254 billion this fiscal year, as reported by the industry body Nasscom. 

The growth comes in the face of a global tech spending decrease of 50% and a 6% fall in tech contracts in 2023. The industry, which previously recorded a revenue of $244.6 billion, is expected to see an incremental revenue of $9.3 billion.

Job creation in the tech sector

Despite widespread concerns over job cuts, Nasscom announced the addition of 60,000 jobs, elevating the total workforce to 5.43 million. This development underscores the industry's resilience and its capacity to generate employment even in challenging times. Nasscom emphasized the shift towards frontier technologies like AI, data analytics, cloud computing, and cybersecurity, highlighting a focused effort on upskilling the existing workforce to meet future demands.

Focus on the domestic market and ER&D

A significant driver of this year's growth has been the domestic market, which is expected to see a 5.9% increase in revenue, amounting to $54.4 billion. The Engineering Research & Development (ER&D) sector has been particularly noteworthy, contributing 48% to the total export revenue addition. Nasscom's President, Debjani Ghosh, pointed out the accelerated growth in domestic tech services and the increasing interest from the Gulf Cooperation Council (GCC) countries in Indian tech capabilities.

The changing landscape of tech deals

Nasscom's report also highlighted a marginal growth in the tech deal pipeline, with a notable 70% spike in the size of deals. This shift indicates a changing landscape where larger, more significant contracts are becoming more common, reflecting a maturing market that is adapting to global economic pressures and opportunities.

Looking ahead, Nasscom's optimistic stance is supported by the robust performance of the ER&D sector and the strategic focus on emerging technologies. The industry's ability to adapt to global trends and invest in skill development is seen as a key factor for sustained growth.

Ghosh's statement, "Going forward, this is going to be one sector that we should watch out for," encapsulates the hopeful outlook for the Indian tech industry in the face of global uncertainties.

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