Technology sector in India
India is the technology hub of the world and plays a leading role in AI, IoT and cloud computing.
ContactIndia has been named the technology hub of the world by the World Economic Forum. This is not only because of India’s huge pool of talented engineers, but also because of its well-developed knowledge in new technologies such as IoT, AI, blockchain, cloud computing and cybersecurity.
India is the world’s favourite destination for setting up Global Capability Centres (GCCs). All the big names in technology sector, from Amazon to Google, have a GCC in India.
With its growing digital infrastructure and government initiatives like Digital India, India offers interesting opportunities for companies looking to innovate faster or looking for a rapidly growing market for their product.
Snapshot of the technology sector in India
- India’s technology sector turned over 245 billion dollars by 2023, growing at about 9% a year.
- India attracted 109.5 billion dollars in foreign investment in the last 4 years. India is the No. 1 choice of foreign companies to outsource their IT and development needs, due to its high concentration of talent with specialisations in new technology like AI and IoT.
- India is the No. 1 destination of multinationals for setting up Global Capability Centres (GCCs) and data centres.
- The share of Indian SaaS companies in the global market has doubled in the last four years. India has as many as 59 SaaS unicorns.
- India is digitising rapidly. The number of internet connections in the country has increased from 251 million in 2014 to 900 million by 2024.
Growth drivers of India's technology sector
- The World Economic Forum considers India the Artificial Intelligence (AI) hub of the world.
- India’s AI sector is growing at a CAGR of nearly 40 percent and will be worth 8 billion dollars by 2025.
- India has a pool of 5.4 million engineers specializing in software development, cloud solutions and emerging technologies such as IoT, DeepTech, Gen AI, robotics and SpaceTech.
- Initiatives of the Indian government such as Digital India, Make in India and the software manufacturing policy, encourage technology development and adoption in all sectors. These initiatives also make it easy for foreign companies to set up shop or purchase services in India.
- In February 2019, the Government of India launched the Software Manufacturing Policy with the aim of making India the No. 1 country for software manufacturing.
- India aims to become the largest producer of semiconductors and other chips. The country’s first 15.2 billion dollars state-of-the-art semiconductor factory is currently being built in India.
Interesting investment opportunities
- Outsource your IT, R&D and software development, IoT, machine learning and artificial intelligence affordably to India.
- India is the emerging R&D and GCC hub in sectors such as pharma, machinery, automotive, agriculture and fintech.
- India aims to become the new leading chip and semiconductor hub globally.
