Economic Survey 2023: India Emerged As Global Powerhouse In ER&D, Digital Talent
As per the Economic Survey 2022-23 report, India’s IT-BPM revenues registered year-on-year (YoY) growth of 15.5 per cent during FY22 compared to 2.1 per cent growth in FY21, with all sub-sectors showing double-digit revenue growth.
Commenting on the sub-sectors within IT-BPM, the report pointed that IT services constitute the majority share (greater than 51 per cent). Exports (including hardware) witnessed a growth of 17.2 per cent in FY22 compared to 1.9 per cent growth in FY21, owing to the increased reliance of businesses on technology, the roll-out of cost-reducing deals and the use of core operations.
The Economic survey report said that growth in exports was seen across all the major markets, as the US, Europe (excluding UK), and the UK remain the sector’s major target markets.
“Many firms in the space are now focusing on new markets, more prominently the Middle East and Latin America leading to market diversification which will increase the IT-BPM sector’s resilience in the coming years,” mentioned the report.
As per the Survey, the IT-BPM industry recorded nearly 10 per cent estimated growth in direct employee pool in FY22 with a highest-ever net addition to its employee base. The domestic technology industry is estimated to grow at 10 per cent on account of enterprise digital acceleration and transformation.
In FY22, IT-BPM undertook over 290 Mergers and Acquisitions in FY22, primarily focusing on digital services.
The report mentioned that India’s massive digital infrastructure played a crucial role in driving technology adoption, with public digital platforms becoming the bedrock of India’s digital advantage.
During a press conference on Economic Survey 2023, Chief Economic Advisor Dr V. Anantha Nageswaran on Tuesday said he believed that India's improved balance sheets and digital infrastructure, together, will add between 60 to 100 basis points (BPS) to India's potential GDP growth. He said this would mean that the country’s GDP may grow at 6.5-7 per cent as opposed to 6 per cent, which seems to be the pick for most international organisations watching the country’s growth.
The Economic Survey noted that the proportion of digital revenue as a percentage of total revenue has increased from around 26-28 per cent in FY20 to 30-32 per cent in FY22.
“In recent years, India has emerged as a global powerhouse for Engineering R&D (ER&D) and innovation and is steadfastly committed to ushering future growth and innovation for global enterprises. Many Global Competency Centres (GCCs) have been incorporated in India in the last six years,” the report mentioned.
On the talent front, the Survey noted that India has emerged as a digital talent nation with a high share of the working population and growing undergraduate enrolments. Employment across technology companies witnessed an increase, with an uptrend in the digital talent base. New talent hiring from tier-2 cities, with a focus on reskilling non-tech talent, has led India to evolve as a significant sub-contractor base, with more women getting back into the workforce.
The Survey also noted that patent filing had increased drastically, with over 1,38,000 patents filed between 2015- 21, with over 85,000 filed in emerging technologies.
