The multi-billion dollar IT industry of India is staring at a growth of 13-15% in the next fiscal year. This prediction was made by R. Chandrashekhar, the president of the software industry body Nasscom. He based this forecast on the future software exports that are slated to bring in the revenue for the country.
The expected growth marks a positive outlook in the global technology spending. Opportunities from adoption of disruptive technologies are also expected to help the cause of the revenue growth.
The expected figures indicate a marginal rise from India’s IT exports in the last fiscal, which were predicted to be at the rate of 12-14%. This means that the expected revenue generation from the software industry can touch up to $99 billion in the next fiscal. This is an encouraging figure as compared to the estimated $86 billion that is expected to be generated in the current fiscal year ending in March.
Domestic Revenues in India
When considered in sync with the domestic market, the Indian IT industry stands at around $118 billion. If the expected growth is combined with the domestic market, the IT sector can be on its way to generate $130 billion for the country.
R. Chandrashekhar was speaking on the occasion of the three-day annual summit of Nasscom, ‘India Leadership Forum 2014’ that began in Mumbai today. The yearly event is expected to be a gathering point for over 1,000 companies and bring over 1,500 delegates from 31 countries from across the world. The event is witnessing its 22nd edition this year.
The president said that even the domestic software industry is expected to grow marginally and better its performance as compared to the last fiscal. The domestic market is predicted to post a growth of around 14%. It is expected to bring around Rs. 120,000 crore (Rs.1.2 trillion) in the coming fiscal as against Rs. 104,700 crore (Rs. 1.05 trillion) last fiscal.
Prospect for Steady Growth
The president was of the opinion that the global economic slowdown and the dull growth of the developed markets remains the main cause for the industry not being able to post as high a growth as during the period before the slowdown of 2008. He conceded that 80% of the industry’s export revenues are generated by the developed overseas market that includes the US and Europe.
Chandrashekhar was optimistic that though the growth rate may not show a steep rise, the climb towards the top will be gradual.
Krishnakumar Natarajan, chairman of Nasscom, said that they are hopeful about the entrepreneurial ecosystem and expects it to propel the growth in the coming economic year. He informed that the country is about to witness 1,200 start-ups across various sectors like e-commerce, education and healthcare. This can mean that India is heading towards being a global village for digital transformation.
Employment Opportunities in India
The chairman also informed that along with the economic growth, the IT industry is also expected to offer employment to 166,000 people in 2013-14. Nasscom has shifted its focus on hiring skill-oriented employees. The industry is expected to touch the 3 million mark in terms of employees and 1 million mark in terms of women employees.