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Below the quote on Unleasing India's Digital Potential: IT Industry Outlook 2023' by Dr. Manoranjan Sharma- Chief Economist, Infomerics Ratings

India is acknowledged as a prominent international centre for IT services and has emerged as the third-largest startup ecosystem globally with a remarkable count of over 100 unicorns. Till FY 2016-17, approximately one unicorn was being added every year. Over the past four years (since FY 2017-18), this number has been increasing at a rapid pace, with a whopping 66 per cent Year-on-Year (YoY) growth in the number of additional unicorns being added every year.

Key insights of the IT Industry of India in 2023

* Projections indicate that the sector is poised to experience robust growth, with a compound annual growth rate (CAGR) estimated between 11 per cent and 14 per cent over the upcoming five years. This trajectory is expected to propel the industry to a substantial value of USD 350 billion by the year 2026.

* The IT industry in India is the second largest in the world, after the United States.

* India is home to over 4 million IT professionals. 

* The IT industry in India expected to contribute 10% to India's GDP by 2025. 

* The IT industry in India is a major source of foreign exchange earnings for India.

* Computer Software industry experienced robust growth of 22.4% and 19.2% in 2021-22 and 2022-23 respectively, but slower growth is anticipated in 2023-24. 

* Investment commitment for Data Centre construction in 2022-23 exceeded ?924 billion, more than double the investment in 2021-22 (?434 billion).

* Uttar Pradesh plans to establish new software technology parks in Agra, Bareilly, Gorakhpur, and Varanasi with a total construction cost of ?800 million.

* IT sector hiring declined by 31% YoY in June 2023 across various types of IT companies. 

* New investment proposals by the computer software industry amounted to ?800 million in the quarter ending June 2023. 

*ITES industry reported a strong 12% growth in sales revenues in the financial year 2022-23. 

* IT services companies expected to report weak June 2023 quarter results due to a soft discretionary spending environment, project pullbacks in financial services and telecom, project ramp downs, and lower conversion of total contract value to annual contract value.

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