Indian tech sector revenues to grow 5% in FY25, cross $300 bn in FY26: Nasscom

Indian tech sector's revenues are set to grow 5.1 per cent to $282.6 billion in FY25, and likely to climb up further to $300 billion in FY26, lobby grouping Nasscom said on Monday.

IMAGE: Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Gerd Altmann/Pixabay.com

The revenue growth is on the "right trajectory", the body's president Rajesh Nambiar told reporters here, pointing out to revenue growth of 4 per cent in FY24, 5.1 per cent in FY25 and the over 6.1 per cent needed to cross its expectation of crossing $300 billion in FY26.

"It has been a good outcome broadly given everything happening around us," Nambiar said pointing to aspects like geopolitics, and tariffs which are dominating the worries at present.

Nasssom said the sector, which includes IT services companies, business process management companies, global capability centres and e-commerce companies, added 1.26 lakh new jobs in FY25 to take the overall employment to 58 lakh.

Nambiar hinted that the industry will continue to add employees in the same pace that it did last year.

The Indian IT sector's FY25 growth is likely to be faster than the 4.7 per cent growth in global tech services spending in the calendar year 2024, Nasssom said, adding that India's share in global sourcing stood at 58 per cent as of FY25.

Among the segments, the IT services companies' revenues will grow 4.3 per cent to $137.1 billion while the BPM industry will see its revenues grow by 4.7 per cent to $54.6 billion.

The engineering research and development space is the fastest growing at 7 per cent at $55.6 billion, Nasscom said.

The domestic revenues for the sector which has been traditionally focused on exports will grow 7 per cent to $58.2 billion, outpacing exports' 4.6 per cent growth at $224.4 billion, Nasscom said.

The body said the export revenues between Indian and global multinationals are evenly split at present, and denied that the heft of the foreign 'companies has increased courtesy of the global capability centres (GCC) play.

It pegged the total number of GCCs at 1,760 and added that such units employ 19 lakh people at present.

A Nasscom official said the overall sentiment is still positive despite all the headwinds which the industry is facing, and a survey of chief executives conducted by the body revealed that they are more confident than last year.

After 4-6 quarters, the discretionary spends are coming back, the official said.