The Economic Survey for the financial year 2023-24 indicated that hiring in the information technology (IT) sector is unlikely to see significant improvement. This follows a notable slowdown in hiring during the previous financial year.
This observation comes amid a decline in headcount at some of the largest IT companies for the first time in a decade. In February, Nasscom reported that the sector would create only 60,000 new jobs in FY24, compared to 270,000 jobs created in the previous fiscal year. However, the Survey noted that by leveraging government initiatives and tapping into emerging markets, exports of business, consultancy, and IT-enabled services could expand.
Industry experts attribute the ongoing hiring challenges to uncertainties, including the upcoming US elections, which create ambiguity around the timeline for a rebound in tech spending, leaving Indian IT sector hiring in limbo.
The Economic Survey also highlighted that engineering, research, and development (ER&D) Global Capability Centres (GCCs) grew by over 30 percent, reaching approximately $25 billion in FY23. In comparison, the IT and business process management (BPM) sectors saw faster percentage growth on a smaller base. GCCs within the IT segment grew by 30 percent to $9.7 billion, while the BPM segment grew by about 27 percent to $10.7 billion in FY23. This data underscores the ongoing challenges faced by the IT services industry in India over recent quarters.
By FY23, GCCs in India had expanded significantly, with over 1,580 centres and more than 2,740 units, up from over 1,000 centres in FY15. These centres contribute to economic growth by providing high-quality employment, according to the Economic Survey.
Additionally, the Economic Survey 2024 stated that the Indian economy needs to generate approximately 7.851 million jobs annually in the non-farm sector to accommodate growing demand and population growth.
India’s workforce stands at nearly 565 million, with over 45 percent employed in agriculture, 11.4 percent in manufacturing, 28.9 percent in services, and 13.0 percent in construction. Notably, female labour force participation has been increasing over the past six years, and the unemployment rate has declined to 3.2 percent in FY23, offering a positive outlook for women’s employment.
 sector is unlikely to see significant improvement. This follows a notable slowdown in hiring during the previous financial year.){kind=link}