Nasscom pegs lower growth in IT exports
The $154-bn domestic IT industry’s software exports are projected to grow at 7-8 percent for 2017-18 fiscal as against 8-10 percent in FY17, while the domestic market is expected to grow 10-11 per cent, according to the industry body Nasscom. A gamut of factors including global geo-political, drastic changes in policies and economic uncertainties is impacting the Indian IT industry.
Forecasts 7-8% software export growth rate in 2017-18 from 8-10% in FY17
Hyderabad: The $154-bn domestic IT industry’s software exports are projected to grow at 7-8 percent for 2017-18 fiscal as against 8-10 percent in FY17, while the domestic market is expected to grow 10-11 per cent, according to the industry body Nasscom. A gamut of factors including global geo-political, drastic changes in policies and economic uncertainties is impacting the Indian IT industry.
“The outlook for the IT industry in fiscal 2017-18 is 7-8 per cent growth in exports and 10-11 per cent in the domestic market as against 10-12 per cent in 2016-17,” said National Association of Software and Services Companies (Nasscom) in its guidance on Thursday.
The domestic IT-BPM industry may add 1.3-1.5 lakh new jobs in the current fiscal of 2017-18 as against the net hiring of 1.7 lakh in the revious financial year.- R Chandrashekhar Nasscom president
Nasscom has lowered its outlook on IT exports in the light of political and economic uncertainties that impacted decision-making and discretionary spend during the last fiscal of 2016-17.Nasscom president R Chandrashekhar said: “The domestic IT-BPM industry may add 1.3-1.5 lakh new jobs in the current fiscal of 2017-18 as against the net hiring of 1.7 lakh in the previous financial year.
Keeping in view the political and economic uncertainties in key overseas markets that impacted decision-making and discretionary spend, and also the performance of IT companies last year. However, we expect the future outlook for the Indian IT industry to be positive. India’s share in the global IT sector is not only steady, but also growing.”
Chandrashekhar was in the city to participate in a programme organised by Nasscom and spoke to the media here on Thursday. The domestic IT industry, including $11 billion incremental revenues added in the previous fiscal, gets 80 percent of revenues from exports, while the US alone accounts for over 60 percent of total software exports.
The domestic IT industry recorded a consistent performance as it added over $60 billion in last five years, while exports doubled over last six years.While advising techies to focus on digital solutions and other niche segments as they will be the key growth drivers, Chandrashekhar said: “despite the headwinds globally, the industry added over $11 billion in revenues during 2016-17 and this was 8.6 percent growth in constant currency and 7.6 per cent in reported currency.” The revenue projection is based on improvements in financial services and high potential in digital business.
By Business Bureau
