Explore how India’s IT sector is revolutionizing the economy, driving growth through emerging technologies like AI, IoT and Blockchain, and positioning the nation as a global tech leader.
- Authored By Kalyan Sharma –
India is an agricultural country. once agriculture was the main support of the country’s economy. However, over the last few decades, advancements and innovations in information technology have given India a new identity on the global stage. The fast-growing information revolution has brought in a new era, completely changing the country’s economic landscape, and India has now established itself as a key player in the global IT sector.
India began its journey in information technology in the 1980s, which gained further momentum with the economic reforms of the 1990s. By 2024, India has positioned itself at the forefront of global competition in IT. Today, the IT sector not only makes a significant contribution to the country’s GDP but also plays a major role in creating jobs. As a result, cities like Bangalore, Hyderabad, Pune, Noida, and Gurugram are rapidly emerging as global IT hubs.
The IT sector has played a crucial role in India’s economic success over the past few decades, contributing nearly 8% to the country’s GDP with impressive revenue of $227 billion in FY23. The sector grew by 9.7% compared to the previous year, indicating a promising future, with predictions that it could reach $300 billion by FY28.
India’s IT sector is a major source of foreign income. Export revenue is expected to reach $190 billion in FY 2023, with a projected compound annual growth rate (CAGR) of 8-10% over the next decade.
As the demand for IT services and digital transformation grows, the need for Indian IT professionals is rapidly increasing both in the country and abroad. This growth is expected to create around 6 million direct and indirect jobs by FY 2028.
Currently, emerging technologies like Artificial Intelligence (AI), Blockchain, the Internet of Things (IoT), 5G, and Quantum Computing are shaping the future of India’s IT sector, taking it to new heights and giving it a new direction.
AI is expected to boost India’s GDP by up to $957 billion by 2035, with the market growing at a rate of 40% from 2023 to 2028.
Blockchain technology will make things more transparent and secure in areas like supply chain management, financial services, and e-governance. It will bring major changes to public services and financial transactions. The global blockchain market is expected to reach $23.3 billion by 2028, with India playing a significant role in this growth.
IoT is expected to transform smart cities, agriculture, and manufacturing by enhancing infrastructure, improving crop monitoring, and supporting the industrial sector. The IoT market in India is projected to grow to $15 billion by 2025
5G technology is greatly improving the internet with better connectivity and faster speeds. Investments in 5G infrastructure are expected to reach $10 billion by 2025, which will help advance smart cities, healthcare, and education. This technology is also expected to add $7 billion to India’s economy by 2025.
Quantum computing will bring amazing new capabilities to computer calculations. India is making major efforts in this area, including setting up the National Mission on Quantum Technologies and Applications (NMQTA). Significant progress is expected in this field, and the global quantum computing market is predicted to reach $65 billion by 2030.
To boost the IT sector and help India compete globally, the government is running several programs. The Digital India program aims to improve digital infrastructure and e-governance. Make in India supports the production of electronics and IT hardware. The National Policy on Software Products (NPSP) encourages the development of software products. The National Artificial Intelligence Mission and AI for All programs focus on advancing artificial intelligence and raising awareness about it. The National Quantum Mission (NQM) and the creation of the National Quantum Technologies and Applications Mission aim to make India a leader in quantum technology. These programs are essential steps toward strengthening India’s position in the global IT industry.
Information technology plays a key role in the country’s sustainable and inclusive development, helping it gain new recognition globally. IT is driving innovation in various industries and creating new job opportunities. It has also enabled effective implementation of government programs like Digital India, Smart City, and e-governance, improving transparency and efficiency in administration. Additionally, IT has brought significant changes to education, health, finance, and agriculture, boosting the country’s economy. As a result, India is now emerging as a global IT hub.
Disclaimer : The views expressed by the author in this feature are entirely her / his own and do not necessarily reflect the views of invc news.
