February 10, 2012: The growth of the Information Technology (IT) and Information Technology enabled Services (ITeS) industry in India is expected to dip in 2013. However, the projections say that the sector will cover the $ 100 billion (about 5 lakh crore) during the year 2012. During the year 2012, the revenue will increase at a rate of 16.7 per cent; says Nasscom. Even though the projection says that the industry will experience strong growth, the growth as in the present day will come to a halt during Fiscal year 2013. This is due to the economic uncertainty looming across the world.
The important factors that will result in slowing down the growth of the industry ranges from euro zone crisis to exchange rate fluctuations. As a result, Nasscom has reworked the projection for growth of the IT and ITeS industry to 11per cent to 14 per cent for the fiscal year 2013.
The hike in pay is also projected to record a dip from the present 10 to 14 per cent hike to 8 to 10 per cent during the next fiscal year. The IT and ITeS sector presently has to its inventory 2.8 million employees million has added 2 lakh jobs in the past one year. Sources from the industry observed that increased clarity on policies such as the proposed direct tax code and the goods and services tax and the problems associated with special economic zones will play an important role in putting growth in the right track.
According to Rajendra Pawar, the Information Technology Industry faces large amount of risk in the present day economic situations. The crisis in the Europe, the fluctuation in the exchange rates, presidential elections in the United States and the problem with policies in the India are of matters of concern for the industry. Som Mittal, president, Nasscom has said that the Nasscom officials have spoken with the finance minister on the situation and that the government will introduce better policy administration and taxation.
It is estimated that the IT export will earn revenue of Rs 3.4 lakh Crores and the domestic market will generate revenue of 1.5 lakh Crores in the current fiscal year.
Though Nasscom see a decline in 2013, it still has expectation that Industry will return back to the expected growth. Nasscom projects that the IT and ITeS industry will generate a revenue of Rs 11 lakh crore by 2020. The change in growth trend as predicted may be as a result of the uncertain economic conditions. Nasscom says that the industry has to grow at a rate of 13 per cent to meet the projection of Rs 11 lakh crore.