India's IT sector set to grow at 15.5% in FY22: Nasscom
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The National Association of Software and Service Companies (Nasscom) has said that Indian information technology (IT) sector is set to grow at 15.5 percent - the fastest in over a decade - to $227 billion in FY22, as the pandemic pushes up demand for digitization at companies across the world. It said the revenue growth is much higher than the 2.3 per cent achieved in FY21 in the immediate aftermath of the COVID-19 pandemic, and double that of the pre-pandemic FY20.
The body termed FY22 - the first when overall revenues crossed $200 billion - as a year of resurgence for the sector, as against FY21 which tested its resilience. It now aims to take the overall revenues to $350 billion by 2026. The first $100 billion mark was achieved in 30 years, while the next came within a decade. It pointed out that at a time when the country is struggling with joblessness which is playing out with challenges on streets as well, the industry added 4.5 lakh new jobs to take the overall number of direct jobs to 51 lakh. About 44 per cent of the new jobs, or nearly 2 lakh employment opportunities, were for women, who now constitute 18 lakh workers in the sector which is giving flexible.
From a revenue pie perspective, it said exports are set to grow 17.2 per cent to $178 billion in FY22 or half of the overall service exports, while the domestic market will grow 10 per cent to $49 billion. It noted that E-commerce revenues will touch $79 billion in FY22 from the year-ago period's $57 billion. The new-age digital services sector saw a 25 per cent growth in revenues and now constitute nearly a third of the overall $227 billion pie, adding that 16 lakh employees or a third of the entire talent pool is digitally skilled. Looking at the revenue from a segmental lens, it said the largest contributor IT services grew at 16.9 per cent on the back of demand for cybersecurity, intelligent automation and analytics in cloud; software products grew at a faster 18.7 per cent to $13 billion, while hardware grew the slowest at 7.3 per cent to $17 billion.
