Indian IT firms should eye $300 billion annual revenue, says Ashwini Vaishnaw

The combined revenue of India`s technologies companies is set to soar past $200 billion in the current financial year and now the time has come to set a target of $300 billion, Union Minister for Electronics & IT Ashwini Vaishnaw said on Tuesday.

The minister was speaking at a function to launch `NASSCOM Tech CEO Survey 2022` , a flagship report by the National Association of Software & Services Companies (NASSCOM).

As per the report, the Indian technology industry is estimated to cross the $200 billion revenue mark, reaching $227 billion revenue in FY 2022, witnessing $30 billion incremental revenue in the year with an overall growth rate of 15.5 per cent.”

The target of crossing $200 billion in the industry was the cherished target and very happy that this target has been achieved and time to move on to the next target which is $300 billion,” Vaishnaw said. Recording the highest ever growth since 2011, all sub-sectors of the industry recorded double-digit growth.

Exports (including hardware) recorded a growth of 17.2 per cent clocking revenue of $178 billion, which is over 51 per cent 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.

Propelled by this enhanced domestic demand, the domestic revenue of the technology industry recorded a 1.2 times growth over FY2019 to reach about $50 billion. Ecommerce recorded a growth of 39 per cent to reach $79 billion in 2021-22.

Digital revenue share stood at 30-32 per cent, recording an incremental revenue of $13 billion in FY2022 (estimated). “Fiscal 2022 has been a breakthrough year for the Indian technology industry.

We`ve posted solid, broad-based growth, massively increased jobs, and are proud that we continue to be an engine for India’s economic growth, and a beacon for inclusion and diversity,” said Rekha M.

Menon, Chairperson, NASSCOM.”We are excited about the opportunities in the Techade as we enter an era of exponential transformation and technology becomes indispensable to progress. We remain committed to catalysing the trillion-dollar digital economy with our focus on talent, technology,” Menon added.

India has emerged as a global hub for digital talent with over 5 million tech workforce. The industry recorded nearly 10 per cent estimated growth in direct employee pool in FY2022 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 per cent, NASSCOM said.