Nasscom projects Indian IT sector to grow at 8.6% in FY17; defers industry growth prediction for FY18

Highlights: 

1. Nasscom said that the country's IT sector will grow at 8.6% to reach over  $155 billion in the current fiscal (FY17)  

2. The industry body said that the country's IT-BPM exports is expected to reach $118 billion

3. The domestic IT-BPM market is expected to grow by 12% year-on-year to reach Rs 2,54,500 crore 

India's IT industry body Nasscom in a press conference in Mumbai on Wednesday declined to give growth projection for IT sector for fiscal year 2017-18 (FY18) amidst global events including H1-B visa issue in the US. 

Nasscom said that the country's IT sector will grow at 8.6% in the current fiscal (FY17) as against 8% to 10% growth that was projected earlier.

"...Amidst continuous technology disruptions, political upheavals, and slowdown in IT-BPM global spending, the Indian IT-BPM industry is projected to grow at a rate of 8.6% (in constant currency) to reach over  $155 billion in FY17," Nasscom said in a press release. 

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“While there are some uncertainties in the short term, the initial data from global analysts on tech spending in 2018 is promising. We are initiating deeper interactions with all stakeholders – global customers and industry providers – to get a more reliable and clear perspective on the projections for FY18 and will give the guidance in the next quarter," Nasscom president  R Chandrashekhar, said in a statement. 

The industry body said that the country's IT-BPM exports is expected to reach $118 billion and the domestic IT-BPM market is expected to grow by 12% year-on-year to reach Rs 2,54,500 crore. 

The country's IT-BPM industry currently employs over 3.86 million people, growth of 5% and addition of 1.7 lakh people over FY16, it said. 

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