The National Association of Software and Service Companies (NASSCOM) has released its projections for the Indian technology sector, forecasting a 5.1% growth in revenue for the fiscal year 2024-2025 (FY25). This growth is expected to bring the sector’s total revenue to $282.6 billion. Looking ahead, NASSCOM anticipates that the industry will surpass the $300 billion mark in FY26, representing an approximate 6% increase from FY25.
Key Growth Drivers
Several factors contribute to this optimistic outlook:
- Engineering Research and Development (ER&D): This segment is projected to experience the fastest growth, with revenues increasing by 7% to reach $55.6 billion. business-standard.com
- Global Capability Centers (GCCs): The expansion of GCCs in India continues to attract international businesses, bolstering the sector’s growth.
- Traditional IT Services: Expected to grow by 4.3%, this segment’s revenues are projected to total $137.1 billion in FY25. business-standard.com
- Business Process Outsourcing (BPO): Revenues in this area are anticipated to rise by 4.7%, amounting to $54.6 billion. business-standard.com
Employment Trends
The tech sector’s workforce has expanded significantly, with 126,000 new jobs added in FY25, bringing the total employment to 5.8 million.
Domestic vs. Export Revenues
Domestic revenues are set to grow by 7%, reaching $58.2 billion, outpacing export revenue growth, which is expected to increase by 4.6% to $224.4 billion. Export revenues are evenly split between global multinationals and India-based companies.
Industry Outlook
Despite global economic uncertainties, NASSCOM President Rajesh Nambiar expressed confidence in the sector’s performance, stating, “This is a good outcome broadly given everything happening around us.”
The Indian tech industry’s resilience and adaptability position it well for sustained growth in the coming years.
