IT Industry Revenue Reached USD 227 Billion in 2022 Clocking a 15.5% YoY Growth

IT Industry Revenue Reached USD 227 Billion in 2022 Clocking a 15.5% YoY Growth

As per NASSCOM, the IT sector has revenues of around 227 Billion USD, of which 180 Billion comes from foreign destinations and USD 48 Billion comes from domestic sources. The IT sector in India grew at an unprecedented rate after the 1991 Liberalisation. The contribution of the IT sector to India’s GDP increased from 1.2% in 1998 to 10% in 2019.

The growth of the IT industry has created huge employment opportunities for tech graduates and Technical students. As of 2020, India’s IT workforce accounts for 4.36 million employees. India has emerged as a hub for the IT industry with software companies from India and abroad.

As per TOI, the growth of the IT sector for 2019-20 is 10%. India has become the world’s largest destination for the sourcing of IT services and products with Online retail, cloud computing, and e-commerce immensely contributing to its growth.

Technical courses like Engineering, BCA, and MCA have found great demand in the IT sector. Not only BTech CSE students but students from all specializations of BTech can find employment in the IT sector due to their high analytical and problem-solving skills.

Some of the top skills that accelerate a career in the IT industry include security like firewalls, network, and software security; programming languages, Systems, and networks, Data analysis, etc. Students after BCA courses and BTech courses are equipped with such skills to work efficiently in the sector. 

Importance of the IT sector in India’s Economy

The IT industry as a whole act as a catalyst for other industries to function efficiently. The IT sector has also made Government Schemes and services more efficient and transparent. The Indian market has understood the importance of Information Technology which has resulted in 15.5 % growth in FY21-22.

The IT sector employs 50 lakh employees in total adding 4-5 lakh employees every year. It is one of the highest employable sectors with high earning potential. As per Payscale, an average IT consultant gets paid around INR 10 LPA after 3-4 years of work experience. This will rise to INR 20 LPA after 7-8 years.

The high salary bracket of IT employees is mainly possible due to the high export potential of Indian IT services and products. The Indian IT industry export USD 149 Billion worth of products and services among which services account for 51% of the total value.

Indian software product industry and data annotation market in India are other segments of the IT industry that have huge potential. As per IBEF, the Indian software product industry is expected to reach USD 100 billion by 2025 and all the major companies are taking steps to improve their global footprint and build their global delivery centers. The increase in domestic demand for Artificial Intelligence has accelerated the data annotation market in India which stands at USD 250 million in FY20.

IT Industry Revenue Reached USD 227 Billion in 2022 Clocking a 15.5% YoY Growth

Factors Responsible for the Growth of the IT Sector in India

The birth of the Indian IT sector took place with the Government policy to import hardware and export software in the 1970s. The Government policy was influenced by the Bhabha Committee which emphasized the importance of electronics and computers for the development of the country. Although this policy kickstarted the IT revolution in India the initial results were not very exciting. This led to the Indian Government taking more liberal policies in 1986 when the import of hardware was de-licensed and made duty-free for exporters. This led to reduced entry barriers which made growth in the sector inevitable. 

In 2023, India has a healthy, resilient, and growing IT sector providing IT services to the whole world. With proper educational facilities in place, India has a great pool of talent and resources for developing the IT industry. Apart from resources, Government policies are investor-friendly, developed telecommunication infrastructure, and efficient security practices have made the IT sector a force to reckon with.