Daniel Slotta
Research expert covering Greater China
IT industry in India - statistics & facts
Thanks to strong governmental support, good English based educational system, large talent pool, and the open market, India has a flourishing IT industry, and earned a well-deserved place in the global market. Accounting for around seven percent of the GDP, the IT-BPM has played a significant role in India's socio-economic growth, so much so that it could be the future driver of modern India.
Opportunities and challenges in the IT sector
India spent nearly 144 billion U.S. dollars annually in the IT sector. However, the country had a modest beginning in the field. Lacked proper infrastructural facilities for software development, the government formulated a new software policy that allowed more participation and hassle-free trade procedures. Consequently, the sector witnessed an explosive growth especially post economic liberalization of the 1990s. But it is not without challenges. Changing technologies, especially the rise of AI, tough competition in the global market, and the impact of the coronavirus pandemic have tested its strength while offering new possibilities for future growth. Recent developments in artificial intelligence have created new opportunities for Indian companies, with more and more new players entering the field.Global presence
Within the global business community, India is famous for its high-quality IT outsourcing services. Catering to the needs of the major firms in Europe and North America, India is rightly called as the IT outsourcing hub. As of financial year 2024, India generated nearly 191 billion U.S. dollars in export revenue, more than three times the size of its domestic market. Among various sub-sectors, the IT services and IT-enabled services were the most sought after in the international market. IT services accounted for more than half of the export revenue generated by the information technology industry. As a result, the industry has created millions of jobs in the country.
