Indian Economy News

IT industry to grow 3.8% in FY24 to cross US$ 250 billion, says Nasscom.

  • IBEF
  • February 19, 2024

The Indian information technology (IT) industry is projected to reach US$ 253.9 billion in FY24, growing at a rate of 3.8% year-on-year. Amidst a slowdown in growth, the Indian IT industry faces challenges in achieving its US$ 350 billion target by 2026. Projections indicate that the sector growth will drop from the 8.4% growth observed in the previous financial year. This decline in growth is particularly evident in the reduced incremental revenue addition, with FY24 seeing a decrease from US$ 19 billion in FY23 to US$ 9.3 billion.

According to reports from Nasscom, global tech spending has plummeted by approximately 50%, accompanied by a 6% decline in tech contracts in 2023. Nasscom President, Ms. Debjani Ghosh, highlighted the need to reevaluate the US$ 350 billion target based on the industry's recent performance and upcoming trends. Despite these challenges, Nasscom's "Strategic Review 2024" underscores India's status as the world's largest sourcing hub, contributing 1% to the country's gross domestic product (GDP) through digital public infrastructure. Mr. Rajesh Nambiar, Chairperson of Nasscom and Chairman and Managing Director of Cognizant, acknowledged the industry's continued growth in FY24. Despite the downturn, the Indian tech industry remains a net hirer, with a focus on upskilling. While hiring numbers are expected to decrease to 60,000 in FY24 from 290,000 in FY23, efforts to enhance skills persist.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.