As we celebrate Independence Day 2024, reflecting on how far the IT sector has transformed from a cost-effective service provider to a centre of innovation, delivering cutting-edge technology solutions worldwide is remarkable. The IT sector plays an important role in driving India’s economic and social progress.
The Indian IT industry is a lively and innovative field that showcases India’s ability to advance in technology. Today, India is known worldwide for its tech skills and is home to some top IT companies.
Since its inception in the late 20th century, the Indian IT sector has grown remarkably. Initially, the industry focused on providing low-cost software services and back-office support. Over time, Indian IT companies expanded their capabilities, adopting advanced technologies and moving up the value chain. The liberalisation policies of the 1990s played a crucial role in this transformation, enabling Indian companies to compete on a global scale.
In FY24, the top 3 IT companies in India based on market capitalisation are Tata Consultancy Services (TCS) with ₹15.09 lakh crore, Infosys with ₹7.21 lakh crore, and HCL Technologies with ₹4.22 lakh crore. They have significantly contributed to the industry’s growth. TCS has been recognised as a leader in BFSI’s customer experience services. HCL Technologies continues to expand its global footprint with new delivery centres and partnerships.
India’s IT and business services market is expected to hit $19.93 billion by 2025. IT spending in India is forecasted to grow by 11.1% in 2024, reaching $138.6 billion, up from $124.7 billion last year. Indian IT companies have delivery centres worldwide, and the IT and BPM industry serves various sectors like banking, telecom, and retail.
The government has been instrumental in fostering the growth of the IT sector. In the Union Budget for 2023-24, the IT and telecom sector received an allocation of ₹97,579.05 crore ($11.8 billion). Government initiatives focus on cybersecurity, large-scale computing, AI, and blockchain. With data costs at ₹10 per GB ($0.12 per GB), India has some of the lowest data prices in the world.
Key Government Initiatives:
The Indian IT industry is poised for continued growth. The market is expected to reach $500 billion in revenue by 2030. In FY23, the IT industry made up 7.5% of India’s GDP and is expected to reach 10% by 2025. IT export revenue is forecasted to grow by 9% in constant currency terms, reaching $199 billion in FY24. The industry added 290,000 new jobs in FY23, bringing the total workforce to 5.4 million people.
India’s IT sector has attracted major investments due to its core strengths. India’s public cloud services market was worth $6.2 billion in 2022 and is expected to grow to $17.8 billion by 2027. Companies like Amazon Web Services and Google invest significantly in India’s tech infrastructure.
The Indian IT industry has come a long way from its humble beginnings. It is poised for even greater transformation with continued innovation, government support, and strategic investments. India’s focus on creating economic value and empowering citizens through digital technology ensures its position as a global IT powerhouse. With continued innovation and strategic investments, the IT sector will continue to be a pillar of India’s economic growth and a beacon of its future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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