The IT & BPM sector has become one of the most significant growth catalysts for the Indian economy, contributing significantly to the country’s GDP and public welfare. The IT industry accounted for 8% of India’s GDP in 2020, and it is expected to contribute 10% to India’s GDP by 2025. Indian industry is consistently strengthening its digital capabilities by adopting deep tech technologies and focusing on deploying emerging technology solutions such as AI, Cyber security, and IoT.
In FY22, the Technology industry employed over 450,000 employees to reach a total direct employment of 5 mn, and contributed 51% to overall services exports. With their primary focus as digital, the tech industry undertook over 290 M&As. Over 280,000 employees were reskilled and made digital skilled in FY22. At 30-32% of industry revenue, digital revenues grew five times the rate of overall services growth.
Government of India has taken some major initiatives to promote IT/ ITeS sector in India. Both central and state governments in India have taken steps towards developing technology solutions to digitally enable citizen services. The government plans to focus in areas such as cybersecurity, hyper-scale computing, artificial intelligence, and blockchain.
Indian telecoms are offering 1GB mobile data at $0.086 - one of the cheapest globally. By offering affordable data to consumers, the digital infrastructure enables ease of access to services like banking, governance and more.
Second highest number of internet subscribers in the world.
Up to 100% FDI is allowed in Data processing, Software development and Computer consultancy services; Software supply services; Business and management consultancy services, Market research services, Technical testing and Analysis services, under automatic route
The IT-BPM industry’s (excluding e-commerce) total revenue crossed the $200 bn mark to reach $227 bn in FY2022. The export revenue from this industry (excluding e-commerce) has been estimated at close to $ 178 bn in FY2022. In terms of FDI inflow, the computer software and hardware sectors attract the second highest FDI. Between April 2000 and March 2022, it attracted over $ 85 bn.
India is one of the most preferred destinations when it comes to setting up Global Capability Centres (GCCs). In FY21, more than 1,400+ GCCs have more than 2,300 GCC units in India, employing more than 1.38 mn professionals.
Investment in Software-as-a-Service (SaaS) has increased 62.5% over 2021 and is expected to reach $6.5 bn in 2022. There are 1150+ active Indian SaaS companies; 17 of which have achieved the unicorn status.
Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies are focusing to invest internationally to expand their global footprint and enhance their global delivery centres.