Export growth in the country’s IT-BPO sector is expected to be slower, between 10-12 percent. Growth is expected to be hit by currency fluctuations, especially the weakening of the Indian Rupee against the US Dollar, Nasscom said on Thursday. The industry is looking at 12.3 percent growth in the 2015-16 fiscal, which ends on March 31.
Last year, the IT services and software industry body had forecast a growth of 12-14 percent in exports. However, the rupee recently fell to a 29-month low against the dollar. Currency movements impact the industry, which earns around 80 percent of the revenue from the US and Europe.
The overall industry (along with domestic consumption and hardware) is expected to reach an estimated USD 143 billion in 2015-16. The global IT-BPO spending rose 0.4 percent in 2015.
Amidst a volatile global economic environment, the industry has been able to set new benchmarks by sustaining its double-digit growth. Start-ups and eCommerce are the new champions of the industry and I expect these segments to increase their contribution to industry growth in the years to come.Nasscom Chairman BVR Mohan Reddy
He added that India has increased its market share in global sourcing from 55 to 56 percent.
We had estimated that the domestic segment will grow at a certain pace on the back of the announcements made by the government and trends that we saw. However, many of those have not taken off. As and when they do, we will see a larger impact.Nasscom President R Chandrashekhar
The industry is expected to add around 2 lakh jobs and is marching steadily to reach total revenue of USD 350 billion by 2025 with digital revenues spearheading growth.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)