Tale of contrasts in tech growth, Nasscom count

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Subscribe to enjoy similar stories. The performance of India's technology companies seems to be at variance with the latest count by the industry's apex body. While Nasscom has projected a meagre 5.1% growth for the industry in FY25, a year when the Big Five of the IT industry have fared well, its revised estimate for FY24 pegged growth at nearly 10%, when the same companies had reported their weakest growth ever.

On Monday, Nasscom said the IT industry should end with $283 billion in revenue in FY25, which would mean a 5.1% growth from the year-ago period. Surprisingly, for the first time in a quarter of a century, it revised its FY24 revenue estimate from the $253.9 billion set in September to $268.8 billion. Nasscom also restated numbers for the people employed in the sector, from 5.43 million to 5.67 million.

These revised numbers imply that in March 2024, the IT industry grew from $244.6 billion a year earlier to $268.8 billion-- a steep 9.9% growth -- and added 300,000 people. It also said in FY25, the industry would 126,000 people to its 5.8 million-headcount. Put simply, Nasscom estimates that India’s IT industry services will grow slower in the current fiscal year than last year.

Also read | IT companies' revenue revival seen delayed to FY26 This is where Nasscom’s revised numbers are out of sync with the growth of the country’s largest IT services firms. The IT services segment is the largest of the $254 billion IT industry, accounting for half, or $128.4 billion. Engineering, Research and Design, and Software products firms were the second largest, accounting for 23%, or $58.5 billion.