India’s tech services industry comprises of players that design, build, implement, manage, and support technology solutions for clients, primarily through IT services, software development, digital transformation, and operations.
About India’s Tech Services Industry
- Contribution: Nearly 7% to GDP and generating around $265 billion in annual revenue.
- To align with the vision of Viksit Bharat@2047, the sector needs to aim to achieve $750–850 billion in annual revenue by 2035 to sustain a 7–8% share of GDP and expanding its global market share from present 20% to beyond 25%.
- Challenges: Post-pandemic headwinds — including macroeconomic uncertainty, AI-led automation, and intensifying competition—have slowed annual growth to 4–5%.
- Current trajectories indicate a $250–300 billion shortfall.
- Roadmap identifies five priority growth levers:
- Agentic AI: Leverage AI to build hybrid ‘human + agent’ service models.
- Software & Products: Strengthen India’s position as global SaaS capital.
- Digital Infrastructure: Establish India as world’s data services and AI infrastructure hub.
- Innovation-led Engineering: Harness R&D spend pools with India-based innovation centers, Center of Excellences and frontier technology partnerships.
- India-for-India solutions: Leverage India’s rapidly growing domestic demand with customized AI and multilingual platforms.
