The Indian IT sector, a significant contributor to the country’s economy, is set to witness a considerable slowdown in hiring, as per the Economic Survey 2023-24.

What Happened: The Economic Survey for the financial year 2023-24, tabled in Parliament on July 22, indicates a marked deceleration in recruitment within the IT sector over the last fiscal year. The survey projects that even if the hiring pace doesn’t drop further, a substantial upswing is improbable, Moneycontrol reported.

This revelation comes when several of India’s biggest IT firms have reported a dip in workforce numbers for the first time in many years. In February, Nasscom, the tech industry body, announced that the sector is likely to generate merely 60,000 new jobs in FY24, a sharp drop from the 2.7 lakh jobs created in the preceding fiscal year.

See Also: IDBI Bank Shares Jump As Profit Surged 40% To ₹1,719, NII Slides 19%

Despite the sluggish hiring trend, the new additions in FY24 would elevate the total employee count in the services export sector to 54.3 lakh. The survey also highlighted that capitalising on government initiatives and penetrating emerging markets could potentially boost exports of business, consultancy, and IT-enabled services.

IT majors have reported strong results in the June quarter. Large-cap IT names such as Infosys, TCS, HCLTech have reported better-than-expected earnings, prompting brokerages to raise estimates.

Read Next: TCS, Tata Motors, Reliance In Emkay’s Model Portfolio, HDFC Bank, SBI Cards Get ‘Avoid’ Tag

Image From Shutterstock