IT industry growth set to slow down, says Nasscom

India's information technology and IT-enabled services sector will show slower growth in the next fiscal year, according to a report released by industry body Nasscom today.

While revenues will cross the $100-billion mark as Nasscom had earlier predicted, it said the growth rate would slow down in 2012-13 amid concerns over the global economic situation and uncertainties in domestic policy, it said.

Hiring is expected to be lower at 100,000 jobs in the year, and the growth in wages will also be down 8-10 per cent, said the 'strategic review report' of the National Association of Software and Services Companies.

The report comes even as the union government is preparing to increase taxes on the industry in the budget for the next fiscal, due to be unveiled in mid-March.

According to Nasscom's estimate, total revenue of the sector will be $101 billion. Exports will account for $69 billion (Rs3,39,549 crore) of this, with the domestic market contributing less than half of that at $32 billion.

Elections in the US, the euro zone crisis, and India's own "policy paralysis" were among the reasons for the projected slowing down of the industry's growth rate to 11-14 per cent in the upcoming fiscal, Pawar said.