IT sector to see muted revenue growth of 5-7% in FY25: Crisil

The Indian IT services sector is likely to see a second year of subdued growth in FY25, with modest projected revenue increases of 5-7%, amid ongoing global economic challenges that have limited growth in tech spends in primary markets in the US and Europe, according to a Crisil Ratings report. This has poured water on the much-anticipated recovery in the second half of FY25.

This follows a 12% compound annual growth rate (CAGR) over the past decade, barring a 6% growth in FY24. The study by Crisil Ratings, covering the top 24 firms that make up about 55% of the sector’s revenue last fiscal, supports these findings.