India is now home to $200 billion revenue worth tech industry: NASSCOM

NASSCOM organized a web conference today on strategic review and tech trends for 2022.

Ms. Debjani Ghosh, President, NASSCOM, said that while 2020 stood for resilience, 2021 stood for re-invention. India is now home to a $200 billion revenue worth tech industry. There was 59% share in global sourcing market, and India remains the no. 1 market. There were $178 billion exports contributing to 51% share of the services export. There were 5 million direct employees added.

2021 saw an acceleration in tech spending. Global economy posted positive growth after a pandemic. Global tech spending was at $4.2 trillion, growing at 9%. In FY 2022, we saw the highest growth since 2011, at $227 billion revenue, a $30 billion incremental revenue in the year. Digital revenue grew 30-32%. It was a bumper year for e-commerce with 39% growth. Digital is re-imagining every industry sub-sector.

India has emerged as a digital talent nation. The digital talent pool was at 1.6 million. Digital talent pool is growing at 25% CAGR. 36% women are employed in the Indian tech industry. 200K women will be hired in FY2022E.

There are rapid strides in innovation and transformation capabilities. 138K tech patents were filed by firms in India during 2015-21. R&D investments increased ~1.5X. 70% of tech organizations are looking at adopting hybrid work models. Virtual screening, recruitment, onboarding, and training, are becoming the norm. India has become the 3rd largest start-up hub. The Indian domestic tech market is ~$50 billion.

Ms. Sangeeta Gupta, NASSCOM, talked about CEO survey insights. Current demand trends are on tech spending, and economic growth point to a positive outlook on tech spending and hiring. FY2023 is poised to be another growth year. There is focus on an employee-first organization. 70% CXOs expect 2022 to be another growth year driven by digital demand. High-tech spending verticals for 2022 include pharma/healthcare, BFSI, manufacturing, retail/e-commerce.

Ms. Ghosh added that the Indian industry can achieve an ambitious growth vision of $350 billion by 2026. There are five key imperatives -- talent, ease of doing business, enabling tech regulatory framework, increased R&D, and global brand.

NASSCOM priorities in catalyzing the trillion $ digital economy are accelerated industry growth and thought leadership. We are catalyzing the future readiness, toward digital next. We are maximizing tech innovation and impact.

Ashwini Vaishnaw, Hon'ble Union Minister of Communications, Electronics & IT, launched the report. He congratulated the industry for achieving the target of $200 billion. He thanked the industry for increasing the employment. We are also looking at expanding to tier-2 and tier-3 cities. We believe in inclusive development and social harmony. The industry has been extremely resilient, since the pandemic started. It is evident in the numbers. Space tech has been opened, as has quantum computing, and semiconductor is a reality. We have received superb response from the semiconductor industry since Dec. 15, 2021.

Earlier, Ms. Rekha Menon, Chairperson and Senior MD, Accenture India, and Chairperson, NASSCOM, welcomed everyone. Krishnan Ramanujam, President, Business & Technology Services, Tata Consultancy Services and Vice Chairperson, NASSCOM, presented the vote of thanks.