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India emerged as a bright spot for global tech firms with growth rates here outpacing the rate of expansion in revenues globally. Filings with the Ministry of Corporate Affairs for firms such as Apple, Microsoft, and Meta show that for FY23 revenues in India grew at a faster pace in comparison to the growth in earnings globally.
As the threat of a recession after the Covid19 pandemic continues to loom. 2022 and 2023 have been difficult years for tech firms globally. In the past two years the global tech industry has had to cull entire projects and lay off thousands in their workforce in the beginning of 2023.
However, India defied global trends by continuing to grow, as business for these tech firms stagnated worldwide. Although this growth rate is on a low base, since India has a disproportionately low contribution to the revenues of these tech giants, this could bode well for these enterprises, as India will play a larger part in these companies’ revenues in the future.
Take the case of Apple for instance, which is placing a significant bet on India to become a major manufacturing hub for the firm, as part of its China+1 strategy. The iPhone maker set an all time revenue record in India in FY23, reporting a 48 per cent annual revenue growth to $5.9 billion in FY23. As of April 1, 2023, the Cupertino based firm’s three months ended revenues had shrunk by 2.5 per cent to $94.8 billion.
Similarly, Meta India’s gross ad revenue grew by 13 per cent in FY23, but for three months ending in March 2023 – the firm reported a 4 per cent growth in ad revenues. This is after, the rising inflation in India has slashed ad revenues for Meta in FY23, drastically (Meta saw a 74 per cent year on year increase in ad revenues in FY22 in India).
Revenue for Microsoft India jumped by 39 per cent in FY23, revenues for the firm grew 7 per cent year on year, globally for the firm for the three month period ending on March 31, 2023.
These are not unexpected trends as the Indian economy has been mostly unaffected by the global recession worries.
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