Indian technology industry is on its pathway to double its revenue to $500 billion by 2030, and the anticipated revenue of India’s technology industry is $254 billion in FY24, including hardware, with an addition of $9 billion over the previous year.
According to the National Association of Software and Services Companies (NASSCOM), the IT industry generates an estimated revenue of $168 billion annually, which accounts for 8% of India’s GDP. This industry is also one of the biggest organized sectors of employers, producing approximately 14 million direct and indirect jobs. It is further expected that the IT and BPM industry will add up to $350 billion to the nation’s economy by 2025.
The government introduced the Software Technology Park (STP) Scheme, which is a 100% export-oriented scheme for the development and export of computer software, including the export of professional services using communication links or physical media. Moreover, the Cabinet has approved the allocation of more than Rs. 10,300 crore ($1.2 billion) for the IndiaAI Mission in March 2024, while marking a significant step towards boosting India’s AI ecosystem. The Cabinet has also approved PLI Scheme 2.0 for IT Hardware with a budget expenditure of Rs. 17,000 crore ($2.06 billion).
Why IT-BPM?
Robust Demand
The domestic technology sector has shown an annual revenue of $54 billion in FY24, increasing at 5.4% annually. Additionally, in FY22, the top three IT companies of India (TCS, Wipro, and Infosys) were expected to offer 1.05 lakh job opportunities due to the growing demand for talent and skills.
Competitive Advantage
Indian cities provide cost savings in terms of cost of living, cost per FTE, and average office rent, as compared to other substitutes such as Singapore, Beijing, Manila, and Kuala Lumpur. Moreover, India scores 60 out of 100 in digital competitiveness and is moving ahead of BRICs nations besides China, this reflects the growth of tech talent in the nation.
Policy Support
The government of India prioritizes hyper-scale computing, cybersecurity, AI, and blockchain. Also, with data charges at Rs. 10/GB ($0.12/GB), India ranks amongst the world's low-cost economies. Additionally, in the Union Budget 2024-25, the government allocated Rs. 1,16,342 crore ($13.9 billion) for the IT and telecom sector.
Opportunities
According to a Ministry of Electronics and IT report titled ‘India's trillion-dollar digital opportunity’, shows that India is estimated to have 60–65 million jobs that require digital skills by 2025-2026.
