February 24th 2025.
Mumbai: The Indian tech sector is gearing up for significant growth in the next few years, according to a statement by lobby group Nasscom on Monday. The body's president Rajesh Nambiar shared that the sector is set to see a 5.1% increase in revenue, reaching USD 282.6 billion in FY25. This growth is expected to continue, with a projected revenue of USD 300 billion in FY26.
Nambiar expressed satisfaction with the sector's current progress, citing a 4% growth in FY24 and a 5.1% growth in FY25. He also highlighted the need for over 6.1% growth in order to meet the expectation of crossing the USD 300 billion mark in FY26. Despite challenges such as geopolitical tensions and tariffs, Nambiar remained optimistic about the sector's performance.
According to Nasscom, the Indian IT sector, which includes IT services companies, business process management companies, global capability centres, and e-commerce companies, added 1.26 lakh new jobs in FY25, bringing the total employment to 58 lakh. Nambiar hinted that the industry will continue to add employees at a similar pace in the coming years.
In comparison to the global tech services spending growth of 4.7% in 2024, Nasscom projected a faster growth rate for the Indian IT sector in FY25. The body also highlighted India's significant share of 58% in global sourcing. Among the various segments, IT services companies are expected to see a 4.3% growth, reaching USD 137.1 billion, while the BPM industry is expected to see a 4.7% growth, reaching USD 54.6 billion. The engineering research and development space is the fastest growing, with a projected growth of 7% and a revenue of USD 55.6 billion.
Nasscom also shared that the domestic revenues for the sector, which has traditionally been focused on exports, will see a growth rate of 7%, reaching USD 58.2 billion. This outpaces the 4.6% growth rate for exports, which is expected to reach USD 224.4 billion in FY25. The body also clarified that the export revenues between Indian and global multinationals are evenly split and denied any increase in foreign companies' influence due to the global capability centres.
Nasscom also stated that there are currently 1,760 global capability centres in India, employing 19 lakh people. Despite the headwinds faced by the industry, including the ongoing pandemic, a Nasscom official shared that the overall sentiment is positive. A survey conducted by the body revealed that chief executives are more confident this year compared to the previous one. The official also noted that discretionary spending is making a comeback after 4-6 quarters.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
