New Delhi, Jan 31 (PTI) Software exports stayed relatively resilient during the pandemic as well as amid current geopolitical uncertainties, the Economic Survey noted on Tuesday but drew attention to a Nasscom review which has indicated that technology spending during FY23 is likely to see a relatively muted growth due to expected global slowdown.
India's massive digital infrastructure played a crucial role in driving technology adoption, with public digital platforms becoming the bedrock of the country's digital advantage, said the Economic Survey tabled in Parliament.
"Among services exports, software exports have remained relatively resilient during the Covid-19 pandemic as well as amid current geopolitical uncertainties, driven by higher demand for digital support, cloud services, and infrastructure modernisation catering to new challenges," it said.
It further said: "However, NASSCOM’s quarterly review in August 2022 indicates that technology spending during FY23 is likely to see a relatively muted growth dampened by an expected global slowdown." The pandemic accelerated the pace of digital transformation across most of India's end user industries, with companies witnessing a rise in investment, more complex technology convergence use-cases, and the prioritisation of enterprise-scale data and cloud strategy.
"With rapid digitisation across the value chain, end-user industries are primed to adopt holistic and high-end enterprise performance solutions in an evolutionary journey over the near to long term," the Survey observed.
Focus on customer-centricity, domain-specific solutions, a digital-first talent pool, and a laser-sharp focus on creating future-ready solutions have been the key pillars that enabled technology firms to respond proactively to emerging customer demand throughout the pandemic.
IT-BPM (Information Technology - Business Process Management) revenues registered on-year growth of 15.5 per cent during FY22 compared to 2.1 per cent growth in FY21, with all sub-sectors showing double-digit revenue expansion.
Within the IT-BPM sector, IT services constitute the majority share (over 51 per cent). Exports (including hardware) witnessed a growth of 17.2 per cent in FY22 compared to 1.9 per cent growth in FY21, owing to the increased reliance of businesses on technology, the rollout of cost-reducing deals and the use of core operations.
Growth in exports was across all the major markets, with the US and Europe being the major markets.
Many firms are now focusing on new markets, more prominently the Middle East and Latin America, leading to market diversification which will increase the IT-BPM sector's resilience in the coming years.
The domestic technology industry is estimated to grow at 10 per cent on account of enterprise digital acceleration and transformation. PTI MBI MBI ABM ABM