India's technology industry is expected to continue its growth in double digits in FY2023, according to a NASSCOM report titled Strategic Review 2023 – Priming for a ‘No Normal’ Future.
The country's technology industry is estimated to grow by $245 billion, reflecting an incremental net revenue addition of $19 billion for the year. The growth has been seen in IT services, BPM, software products, ER&D, and the domestic market.
Sharing his views, NASSCOM Chairman Krishnan Ramanujam said, “FY2023 has been another growth year for the industry creating impact for the country and all our stakeholders. Despite global headwinds and some moderation in demand, the industry value proposition of resilience, agility and a transformation partner for global enterprises, enabled the industry to strengthen its leadership in core and emerging areas.”
The US and Asia Pacific continue to be the major markets, with both growing at 10.4 percent and 10.1 percent, respectively. The industry is also a net employer, creating 290,000 new jobs in FY2023. With a 36 percent digitally skilled workforce, the industry remains on the top in terms of AI skills penetration, the second-largest in terms of AI/ML BDA talent pool globally, and third in terms of installed supply of cloud professionals.
With a total of two million women employees, the industry showcases a deep focus on bringing diversity to the workplace reporting a net addition of over 140,000 women employees during the year, according to the report.
NASSCOM President Debjani Ghosh said, “In a no-normal environment that we are living in today, the industry focus continues to be on investing for growth. Propelled by forward-looking policies, strong governance, talent and digital trust to ensure accessibility, privacy, security, and reliability, the tech industry in India is on track to accelerate growth to $500 billion by 2030.”
“The proportion of digital tech in the overall technology services revenue has been increasing year after year. From only around 26-28 percent in FY2020, to leapfrogging to over 32-34 percent in FY2023, there has been increasing penetration of digital tech in the industry. Within this, analytics, cloud, and cybersecurity are emerging as the fastest-growing segments wherein the share of Cloud deals was reportedly 4X of pre-pandemic levels,” the report read.
Interestingly, since 2010, 60 percent of the total 266,000 tech patents filed in India are within emerging technologies, and emerging tech patents accounted for 73 percent of all tech patents in 2022.
Tech startups in India also seemed to have performed significantly well, as per the report. The country added over 1,300 new startups and 23 new unicorns in 2022. The country has also emerged as a hotbed for deep-tech startups in India, reaching a total of 3,000-plus in FY23, wherein 485-plus inventive deep-tech startups are developing innovative solutions.
