IT industry braves Covid-19, clocks ₹1.20 lakh cr exports in Q1

K V Kurmanath Hyderabad | Updated on August 11, 2021

STPI pegs IT exports in 2021-22 at 8-9%

If the first quarter export numbers are any indication, the Indian information technology industry is poised for a 8-9 per cent growth in exports in the current financial year.

The IT companies attached to the STPI have registered exports to the tune of ₹1.20 lakh crore in the first quarter ended June 30, 2021.

“During the pandemic year, the Indian IT industry displayed great resilience to global disruptions and delivered services and solutions to their clients across the globe,” Omkar Rai, Director-General of Software Technology Parks of India (STPI), has said.

The growth was triggered by factors like significant adoption of cloud and emerging technologies by enterprises across industry verticals and rapid digitisation by MSMEs (micro, small and medium enterprises) to become competitive.

“During the first quarter of the financial year 2021-22, the STPI-registered units have realised ₹1.2 lakh crore exports, which would rise further in the coming quarters,” he said.

There are about 5,100 units registered under the STPI in different parts of the country.

The quantum of exports, however, was a tad lower than ₹1.27 lakh crore recorded in the same quarter last year.

The STPI executive, however, contended that it was not proper to compare numbers as the present quarter was preceded by a prolonged pandemic, while first quarter last year was preceded by a normal year.

“The H1 (first half) numbers would be more appropriate to compare as the industry would reflect the situation better then,” he said.

Growth drivers

Pegging a growth rate of 8-9 per cent in exports for 2021-22, the STPI said fintech, medtech, edutech and gametech would drive the growth in the remaining three quarters.

The STPI, in fact, has upwardly revised the growth forecast. In April 2021, the STPI had forecast that the exports would grow at 5-6 per cent.

With the demand for digital transformation growing significantly, the STPI has revised the growth estimates for the current financial year.

As the businesses embrace technologies like artificial intelligence, machine learning, blockchain, big data analytics, augmented reality and virtual reality, the STPI expected a high single-digit growth rate during the year.

The STPI-registered companies have registered exports worth ₹5.01 lakh crore during 2020-21 against ₹4.60 lakh crore in 2019-20.

Karnataka topped the list with ₹2.05 lakh crore, followed by Maharashtra with ₹96,805 crore and Telangana with ₹84,775 crore.

Published on August 10, 2021

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