Indian tech sector to hit $245 bn in FY23; headwinds seen in FY24: Nasscom

A silver lining amid news of mass layoffs is that the IT industry remains a net employer with over 5.4 million in the workforce; it created 290,000 new jobs in FY23, Nasscom said

The Indian tech industry has remained resilient despite an uncertain macroeconomic environment and is expected to hit $245 billion in revenue terms in FY23, said a Nasscom report. Chief executive officers (CEOs), however, are “cautiously optimistic” about FY24 because of headwinds such as demand contraction, emerging tech regulations, skilling gaps, and delayed decision-making.

These headwinds are already weighing on FY23 numbers: The incremental increase in net revenue is estimated at $19 billion this financial year, against $30 billion in FY22.

Given the challenges, Nasscom, the industry body representing the Indian tech industry, in its Strategic Review 2023, has defined the year as