In pandemic-hit FY22, IT revenues swell to 227 billion dollars, growth fastest over a decade

India’s Information Technology sector is set to become a $227 billion industry in FY’22, registering a 15.5 per cent growth, industry body Nasscom said on Tuesday.

The 15.5 per cent growth is the highest in over a decade and Nasscom’s president Debjani Ghosh termed it as a year of resurgence, after the one of resilience in the immediate aftermath of the pandemic. The industry revenues had grown by 2.3 per cent to $194 billion in FY21.

In its yearly strategic review for FY22, Nasscom said the industry added 4.5 lakh new jobs to take the overall direct employees to 50 lakh people. Over 44 per cent of the new hires were women, and their overall share is now 18 lakh. Export revenues grew 17.2 per cent to $178 billion, while the domestic revenues grew 10 per cent to $49 billion, it said.

Share of the new age digital services grew 25 per cent to $13 billion and India has a strong workforce geared for technologies of the future, Ghosh said. Nasscom, which has ceased to give a growth projection for the future, said that a chief executives’ survey pointed to another growth year.

Over 70 per cent of those polled said they will be able to maintain growth in 2022 as well. Ghosh said the grouping “clearly” sees an ability to reach $350 billion in revenues by 2026, saying the “India narrative is becoming tremendously powerful”.

The survey said employees will be the key focus areas for companies in the new year, with measures on upskilling and retention, while research and development investments will also accelerate.