IT, ITeS to cross $100 bn mark,fears slowdown next FY: NASSCOM

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India's IT and IT services sector will cross the USD 100 billion-mark this fiscal but the growth rate will slow down in the next fiscal as concerns over global economic situation and domestic policy issues loom large, industry body NASSCOM said today.

NASSCOM also said hiring is expected to be lesser at 1,00,000 jobs in the next fiscal and the growth in wage hike will also be lesser at around 8-10 per cent.

"This has been a very good year for the industry and we have seen a growth of 16.3 per cent. This year (fiscal) the industry will cross USD 100 billion mark," NASSCOM Chairman Rajendra S Pawar said.

As per estimates by the industry body, total revenue of the sector will be USD 101 billion out of which USD 69 billion will be from exports and USD 32 billion from domestic market.

Stating that the current environment has become uncertain due to a variety of factors such as the elections in the US, Eurozone crisis and India's own "policy paralysis" among others, Pawar said for the fiscal 2012-13, the industry is expected to grow between 11-14 per cent.

"We will revisit this forecast in October. The mood is more sombre now and these uncertainties are forcing us not too look at the whole year," he said.

The industry can meet the vision 2020 target of touching USD 225 billion povided it grows at a compounded annual growth rate of 13 per cent from fiscal 2012-13, he added.

Commenting on the hiring prospects in the industry, NASSCOM President Som Mittal said: "There is a strong hiring pipeline of over one lakh offers."

This will, however, be lesser than around 1,20,000 jobs projected to be witnessed in the ongoing fiscal.

On the salary hike front, NASSCOM said the growth could be in the range of 8-10 per cent in 2012-13 as compared to 10-14 per cent in the current fiscal.

Calling for government support, as is being done by competitor countries like China, Brazil, Phillipines, South Africa and Egypt among others, Mittal said India's policy should chart out a clear road map for the industry.

"There is policy paralysis in India. There is no road map on DTC, GST and SEZ issues. Also there is increased tax activism and sometimes we feel we are soft targets," Mittal said citing examples of issues like 'body shopping', transfer pricing under which IT firms are made to pay more taxes.