Last Updated on Feb 16, 2022 by Manonmayi
The National Association of Software and Services Companies (Nasscom) announced on Tuesday that India’s technology industry broke the $ 200 bn. revenue barrier this fiscal year, reaching a new high of $ 227 bn.
According to Nasscom’s Strategic Review 2022 report, the industry saw $ 30 bn. in additional revenues during the year. Including the overall growth rate of 15.5%, which is the fastest since 2011. The industry has also set a lofty goal of reaching $ 350 bn. in revenue by FY 2026, with an annual growth rate of 11-14%, according to the research.
All of the industry’s sub-sectors grew by double digits. Exports (including hardware) increased 17.2% to $ 178 bn., accounting for more than 51% of India’s total software services exports.
India’s massive digital infrastructure, with public digital platforms serving as the backbone of the digital advantage, played a vital role in driving tech adoption. Domestic revenues in the IT business increased 1.2 times to almost $ 50 bn. in FY 2019, owing to increased local demand.
In FY 2022, e-commerce increased by 39% to $ 79 bn. In the same year, the digital revenue share was 30-32%, resulting in $ 13 bn. in additional revenue. According to the research, India has also emerged as a global hotspot for digital talent, with more than 5 mn. tech employees. And the industry added about 10% to its direct workforce, with a net addition of nearly 4,50,000 jobs, the highest-ever net addition, during the same time period.
The software services industry employs 1.8 mn. women, or 36% of the total workforce, making it one of India’s major private-sector employers of women. Furthermore, with one out of every three employees already digitally proficient, the digital tech talent pool has grown to 1.6 mn. people, with a CAGR of 25%.
The tech industry reskilled around 2,80,000 personnel in FY 2022, thanks to a strong focus on reskilling and upskilling. India’s technology industry has evolved as a digital tech powerhouse. Digital sales account for 30-32% of total income and more than 66% of all transactions taking place online. More than 290 mergers and acquisitions were also completed in the industry, with digital as the key focus.
Meanwhile, India is the world’s third-largest startup ecosystem globally, with over 25,000 tech-based companies with 42 unicorns and 11 IPOs (initial public offerings) expected in 2021. During the same period, about 2,250 tech companies were formed, with a total capacity of $ 24 bn., the largest amount ever raised. The software products portion of the market has also matured, with over 2,000 software products companies and 1,000 SaaS companies.