A TALE OF TWO CITIES

India’s ‘techade’ is facing some challenges due to global headwinds, but with the 5G rollout opening opportunities and newer technologies gaining ground, backed with steady economic growth, India’s tech sector is holding its own

- NOOR FATHIMA WARSIA

THE END OF 2022 was marked by news such as ‘the big trillion-dollar tech meltdown’, ‘the great layoffs’ and the like, headlining the commencement of a tough period for the global IT and tech industry. A series of costcutting and restructuring drives began that impacted other sectors as well, including startups, and India was not spared either. India was already braving the funding winter last year and is now bracing for a slump in global tech services demand. This not only translated into significant layoffs across companies but also impacted campus hiring and revisiting required skill sets. While it is true that the situation is not as glorious as it was a year ago, at least in India, it is not all that grim.

Silver Linings

In its latest report, the World Bank said that India’s GDP growth is likely to moderate to 6.3 per cent in FY24 due to shrinkage in consumption on the back of slower income. The report added that India’s growth continues to be resilient despite these signs. India is one of the fastest-growing economies in the world despite significant global challenges. While the signs of deceleration are real, India is among the few countries, where some areas continue to grow. A case in point is tech startups. This is where a large part of layoffs took place but the direct-to-consumer brands continue to attract investment, capitalising on consumer behaviour and FOMO (fear of missing out) funding.