Tech Industry Growth Slows Down to 3.8% in FY24, from 8.4% in FY23: Nasscom
The growth rate of India’s tech industry has slowed down to 3.8% in the fiscal year 2024, compared to 8.4% in the previous year, according to a report by Nasscom, the industry body representing the IT and business process management sectors. This decline in growth can be attributed to various factors, including the impact of the COVID-19 pandemic and global economic uncertainties. Despite the slowdown, the industry remains optimistic about the future and expects better revenue growth in the upcoming fiscal year.
In its 2024 Annual Enterprise & Tech Services CEO Survey, Nasscom revealed that over two-thirds of the respondents anticipate improved revenue growth in FY25. They attribute this optimistic outlook to several factors, such as strong deal pipelines leading to project implementation, expansion in Global Capability Centers (GCCs), the acceleration of Artificial Intelligence (AI) initiatives from proof of concept (PoC) to production, and increasing discretionary spending.
Nasscom also highlighted the industry’s commitment to upskilling its workforce. It stated that tech companies are dedicating 60-100 hours per employee annually to upskill them. In the last fiscal year, more than 650,000 employees received training in Gen AI skills, indicating a growing focus on artificial intelligence in the sector. The report further revealed that AI activities experienced 2.7 times growth in 2023 compared to the previous year, demonstrating the sector’s increasing investment and innovation in this field.
Looking ahead, Nasscom predicts a positive outlook for industries that underperformed in 2023. Sectors such as banking, financial services and insurance (BFSI), high technology, as well as technology, media, and telecom (TMT) are expected to bounce back and perform better in 2024. These industries are likely to benefit from advancements in technology, improving market conditions, and increased discretionary spending.
The tech industry in India continues to be a key driver of economic growth and job creation. Despite the challenges faced in recent times, the industry remains resilient and optimistic about its future prospects. With its focus on upskilling and investment in AI, the sector is well-positioned to navigate through uncertainties and capitalize on emerging opportunities.
Disclaimer: This article is generated by OpenAI’s language model. The content does not necessarily reflect the views or opinions of any specific entity.
