IT industry to grow by 2.3% in FY21 despite dip in tech spends

The Indian IT industry revenues are set to grow by 2.3 per cent to $194 billion in FY2020-21 and the exports will go up by 1.9 per cent to $150 billion, industry lobby Nasscom said on Monday.

The industry remained a net hirer in the fiscal year, which saw a major hit across the world because of the Covid-19 pandemic, with 1.38 lakh new jobs added to take overall employment to 44.7 lakh, it said.

“We have emerged more resilient and more relevant from the crisis. We have been the bellwether to lead the fight against Covid,” the body’s president Debjani Ghosh said.

She said the industry has become the first sector to recover from the pandemic-induced crisis and hit growth despite headwinds like a 3.2 per cent dip in technology spends across the world on a 3.5 per cent contraction in the world GDP.

The overall deal pipeline is over $15 billion, if one were to go by the numbers disclosed by listed companies, the body said.

On the outlook, 71 per cent of the 100 industry chief executives said global tech spends will be better in 2021. PTI