India’s tech industry shows strong growth, crossed $200 bn in revenue

Indian tech industry clocked double-digit growth across sub-sectors adding $30 bn in revenues in FY 2022 and nearly 450,000 jobs. NASSCOM Tech CEO Survey 2022 says, 72% CXOs expect 2022 to be another growth year driven by digital demand and higher investments in R&D; Resilience and Agility integrated in the industry business model. The Indian technology industry crossed the $200 bn revenue mark, reaching $227 bn revenue in FY 2022, witnessing a $30 bn incremental revenue in the year with an overall growth rate of 15.5%.

Recording the highest ever growth since 2011, all sub-sectors of the industry recorded double-digit growth across. Exports (including hardware) recorded a growth of 17.2% clocking revenue of $178 bn which is over 51% share of India’s total services exports. India’s massive digital infrastructure played a key role in driving India’s tech adoption with public digital platforms becoming the bedrock of India’s digital advantage. Industry experts say, Fiscal 2022 has been a breakthrough year for the Indian technology industry. India has emerged as a global hub for digital talent with over 5 million tech workforce.

The industry recorded nearly 10% estimated growth in direct employee pool in FY2022E with a highest-ever net addition of approximately 450,000 to its employee base. With 1 out of 3 employees already digitally skilled, the digital tech talent pool is at 1.6 million, growing at a CAGR of 25%. With massive focus on reskilling and upskilling, the Indian tech industry reskilled approximately 280k employees in FY2022. With over 36% of women employees, the Indian tech industry is one of the largest private-sector women employers in India with over 1.8 mn women in the workforce.

industry also undertook over 290 M&As with their primary focus as digital. India continues to be the 3rd largest start-up hub in the world with over 25,000+ tech start-ups and witnessing 42 new unicorns and 11 IPOs in the year 2021. Over 2250 tech start-ups were founded in 2021 and a total highest-ever funding of $24 bn was raised in 2021. The industry also witnessed maturity in the software products segment with the presence of over 2000 software product companies and 1000 SaaS companies in India.

Indian SaaS-based companies also secured $4.5 bn funding in 2021. With a massive focus on IP Creation, India ranked 46th in Global Innovation Index. The tech industry filed over 138K tech patents in India during 2015-2021 and increased its investments in R&D by nearly 1.5 times across the spectrum. The Indian Tech industry has emerged as the leader in seamlessly transforming to hybrid work models.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA