India’s tech sector has benefited during volatility in global economy

The Indian tech sector has benefited whenever there has been significant volatility in the global economy in the last two decades or more, according to Nasscom Chairperson Anant Maheshwari.

“I would say in the broader Indian tech ecosystem, we are a composition of many different parts of the tech capabilities,” Maheshwari said in an interview with Sajeet Manghat of BQ Prime. “We have broadly seen in FY23 a continued growth rate in the Indian tech industry and now, it is roughly about $245 billion, in addition to about $19 billion over the last year, and tech just continues to be as a strategic imperative”

On the recent digitalisation and artificial intelligence coming into the picture, Maheshwari, also president of Microsoft India, said the country is starting to be ahead of the rest of the world and has a very strong skilling ecosystem to drive that power.

Maheshwari said the broader tech sentiment is quite intact in the Indian tech industry and, in fact, there is an increasing acceleration of the conversations and the demand signal around tech.

“However, we are in an economically challenged environment globally,” he said. “There is inflation in many parts of the world.”

There are fears of recession in many parts of the world and in any such situation, there is caution and whenever caution is exercised, people do start slowing down a little bit of the tech spend, according to Maheshwari.

“There will be a little bit of a correction on the tech spend,” Maheshwari said. “But if you take a broader perspective of the last three to four years and then you look forward, I would say the tech sentiment and the growth rates are quite intact.” Bloomberg