India's technology industry is experiencing remarkable growth, cementing its position as a global innovation and digital transformation leader. With its diverse talent pool, favorable government policies, and thriving startup ecosystem, India continues to attract international investments and drive technological advancements.
This guide reviews the current state of the Indian tech industry, exploring market growth trends, future predictions, and how companies like Encora are leveraging India's talent pool to deliver exceptional results.
Is the tech industry in India expanding?
The Indian tech industry is more than expanding; it is booming. In fact, India's IT sector is projected to contribute over $254 billion in revenue in 2024 and is expected to hit the $350 billion mark by 2026. This growth is driven by a combination of factors, including:
- Rapid Digital Transformation: Businesses across sectors increasingly adopt new digital technologies, fueling demand for IT services and solutions.
- Government Initiatives: Policies like the Digital India campaign and incentives for startups have created a conducive environment for tech innovation.
- Skilled Workforce: India boasts one of the largest tech talent pools globally, with approximately 5.4 million IT professionals.
This growth is not limited to traditional IT services but extends to emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT), positioning India as a hub for technological innovation.
2024 Indian Tech Market Guide and Analysis
The Indian tech market is set for substantial growth in 2024, driven by advancements in digital technologies and increased investments in the IT sector. Here, we analyze key market indicators to understand the industry's trajectory and economic impact.
Growth Rate
The Indian IT industry is projected to grow at a compound annual growth rate (CAGR) of 10.9% between 2024 and 2029. This robust growth is due to increasing investments in digital transformation and the rise of cloud computing, big data analytics, and cybersecurity solutions.
Revenue
In 2026, India's IT revenue is expected to surpass $350 billion and contribute 10% to its gross domestic product (GDP). This growth highlights the industry's economic significance and is driven by exports and domestic consumption, with software and services leading the charge.
IT Export Dominance
India remains a global leader in IT exports, with IT outsourcing dominating the market with a projected volume of $11.04 billion in 2024. This figure underscores India's status as a preferred destination for companies worldwide seeking cost-effective and high-quality IT services.
Startup Ecosystem
India's startup ecosystem ranks third globally, with over 112,718 officially recognized startups contributing to technological innovation. Initiatives such as Startup India have fostered a culture of entrepreneurship, encouraging new ventures in fintech, healthcare, and edtech.
Future Technology in India Predictions
Looking ahead, India is poised to lead the way in several emerging technologies that promise to reshape industries and enhance economic growth. Here are some predictions for crucial developments in India's future.
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML are revolutionizing industries in India, with applications ranging from healthcare to finance. In 2023, India's investment in AI reached $1.4 billion, making India one of the top ten AI investing countries.
Blockchain Technology
Blockchain is gaining traction in India, particularly in the finance, supply chain, and logistics sectors. As businesses seek transparent and secure solutions, blockchain adoption is predicted to increase, with the number of Digital Asset users expected to reach 107.30 million by 2025.
5G and Connectivity
The rollout of 5G technology is set to transform India's digital landscape, enabling faster and more reliable longevity. This advancement will spur IoT, smart cities, and autonomous vehicle innovations.
Cybersecurity Solutions
As cyber threats become more sophisticated, the demand for advanced cybersecurity solutions is rising. India's cybersecurity revenue is projected to reach $2.87 billion in 2024, driven by the need to protect sensitive data and ensure business continuity.
Hire Tech Talent in India With Encora
Encora is a leader in harnessing the power of India's vast tech talent pool, with over 4,500 skilled engineers, designers, SMEs, and technical experts ready to help businesses modernize their technology with speed and scale. Encora's specialized capabilities in Cloud, Data & Analytics, AI & LLM Engineering, Cybersecurity, Quality Engineering, Digital Experience, DevSecOps, and other emerging technologies position them as a trusted partner for global enterprises seeking cutting-edge solutions.
Encora's exceptional work culture in India is underscored by recognition earned from Great Place to Work (GPTW):
- The #33 'Best Company to Work for in India'
- A Top 10 'Best Workplace for IT and IT-BPM' Services Company in India
- A 'Best Workplace for Millennials'.
With a strong focus on collaboration and integrating industry-leading technologies into clients' strategic roadmaps, Encora delivers transformation outcomes tailored to diverse business needs.
Contact Encora to hire tech talent in India.
