IT Sector Rallied Round To Grow At 2.3 Percent In 2020-21

Despite the impact of Covid-19, the Indian technology sector rallied round to grow at 2.3 percent year on year in the financial year 2020-21 on the back of rapid acceleration in digital transformation and tech adoption, said a Nasscom report on Monday. The IT sector is expected to add over 138,000 net new hires in FY2020-21, taking the total employee base to 4.47 million, according to the IT industry body's Strategic Review 2021 titled, "New World: The Future is Virtual".

Indian tech contributed near 8 percent relative share to the national gross domestic product (GDP), with 52 percent relative share in services exports, and 50 percent share in total foreign direct investment (FDI) based on FDI inflows for the period April to September 2020, it added.

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Investing in digital continues to rise as an imperative for the industry, with organizations building their capabilities and aligning business models to digital practices up to 28 per cent-30 percent of the industry revenues was recorded for digital.

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The Indian domestic market, driven by hardware led demand continued to show resilience, growing at 3.4 percent in the year. With an increased focus on innovation, India witnessed more than 115,000 tech patents filed by companies in India in the last five years.

"As we look at 2021, while there are positives on the vaccination front and accelerated digitization across verticals, the technology industry in India is well geared to build on these trends and continue its transformation journey in this re-defined decade," Debjani Ghosh, President, Nasscom, said in a statement. The industry witnessed 146 merger and acquisition deals in 2020, 90 percent of which were digitally focused. Companies saw a significant rise of 80 percent in cloud adoption during the first half of FY2021 versus the second half, said the report. (IANS)