New Delhi: India’s IT sector has demonstrated resilience in FY25, with steady growth in exports, employment, and digital infrastructure, as per the Economic Survey 2024-2025.
The country’s IT industry is estimated to generate $254 billion in revenues in FY24, marking a 3.8 per cent YoY growth. Tech exports reached nearly $200 billion, while the domestic IT market expanded by 5.9 per cent to surpass $54 billion.
The government’s cloud initiative, MeghRaj, has gained traction, with 1,917 applications supported by the National Informatics Centre’s cloud infrastructure. Additionally, India’s colocation data centre capacity surged to 977 MW in 2023, with a planned addition of 1.03 GW by 2028. The sector is projected to grow from $4.5 billion in 2023 to $11.6 billion by 2032.
The Global Capability Centers (GCCs) in India have also expanded, increasing from 1,430 in FY19 to over 1,700 in FY24. GCCs now employ 1.9 million professionals, focusing on high-value R&D in aerospace, defence, and semiconductors. Engineering R&D GCCs have grown 1.3 times faster than the overall GCC setup rate, positioning India as a global tech hub.
AI adoption is rapidly advancing across industries. In the financial sector, banks like SBI have deployed AI-based assistants for customer service and fraud detection.
Telecom companies are utilizing AI for network optimization and predictive maintenance, while retail and e-commerce firms leverage AI for personalized marketing and inventory management. AI-driven automation has also transformed transport and logistics, optimizing routes and enhancing delivery efficiency.
The FutureSkills Prime platform, launched by the IT-ITeS Sector Skill Council in collaboration with MeitY, has been instrumental in upskilling professionals in AI and emerging technologies. Over 1.27 lakh individuals and 1,236 government officials have been trained under this initiative.
Policy reforms, including the abolition of the angel tax and equalization levy, are expected to improve India’s business climate for IT exports and Global Capability Centers. Additionally, India’s digital economy is projected to cross $1 trillion by 2025, fueled by rapid gig economy expansion and platform-driven work models.
The Economic Survey underscores India’s growing dominance in IT and digital transformation, positioning the country as a leader in AI-driven services and next-generation research and development.
However, Priya Dhankhar, Senior Associate, SKV Law Offices said: “While AI and technological disruptions are mentioned, the assessment lacks depth on their long-term implications for employment and societal equity. Overall, the Economic Survey 2024-25 is a commendable document that outlines India’s growth aspirations and strengths.”
Meanwhile, Ritika Nayyar, Partner, Singhania & Co. stated: “The survey emphasizes infrastructure development and digital initiatives but cautions against potential US market corrections which could have a cascading effect in India. The upcoming Union Budget will further define the economic trajectory.”
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