TECH BYTES – Monthly Tech Industry Bulletin – DECEMBER 2020
Blog: NASSCOM Official Blog
November 2020 ended on a positive note as India’s biggest festival season provided a much needed boost to demand, with online retail sales to business activity indicators signaling the gradual recovery of the economy. According to the latest data from RBI, credit card transactions in August 2020 increased 8 percent in the build up to the festival season as Indians pumped up to spend more. Multinational investment banks have also predicted significant revival next year for India’s economic growth as economic activity gains traction and vaccine deployment is undertaken to address the Covid-19 pandemic.
India’s manufacturing PMI continued its upward climb as the October 2020 index value touched 58.9 – the highest levels seen in nearly a decade, indicating businesses slowly increasing production capacity, as consumer demand is expected to remain strong. Ecommerce festive season sales generated gross sales worth US$ 8.3 billion (about Rs. 58,000 crores), up 65 per cent from last year’s US$ 5 billion (Rs 35,000 crores), as per research firm RedSeer.
The technology sector is also on a road to recovery and growth. The second quarter results of FY2021 for IT-BPM firms recorded highest sequential revenue growth since 1QFY17 of 6 percent, as demand pipeline strengthened. Digital transformation is the key driver, with digital revenues of firms increasing at 11.3 percent sequentially. You can read our report for a detailed analysis here
Our sun-rise sector, tech start-ups, have also shown great resilience. A recent survey report released by us gives a detailed analysis of their road to recovery after initial hiccups faced due to the pandemic. Over 50 percent tech startups expect revenues to pick up in the next six months, with funding and demand expected to reach pre-COVID levels.
In the Digital tech Insights section, highlighting the prominence of Deeptech in COVID-19 times, we cover briefly the themes that stood out in the Cybersecurity and Blockchain space.