Despite global economic challenges—including election-year volatility and increasing trade barriers—India’s digital economy continues to surge. Key growth drivers include strong demand from the US, a recovering BFSI sector, and expansion in telecom, retail, healthcare, and the broader APAC region.According to Nasscom’s Technology Sector Strategic Review 2025, the industry is expected to generate $283 billion in revenue for FY25, marking a 5.1% year-on-year growth. Export revenue is projected to exceed $200 billion, while domestic revenue is anticipated to reach $60 billion—up 7% from the previous year.
AI as the growth catalyst
Artificial intelligence is at the heart of India’s digital transformation. Nasscom’s Annual CXO Survey reveals that 82% of enterprise leaders plan to boost digital spending by over 5% in 2025. This momentum is likely to continue into FY26, with 77% of tech providers expecting stronger growth, though only 45% foresee a proportional rise in hiring.
The sector is on track to hit $350 billion by 2026, potentially contributing 10% of India’s GDP, according to Infomerics Ratings. The software product industry alone could reach $100 billion by next year, driven by global expansion and investments in AI, data, and cloud technologies.
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The government is ramping up public investment in technology. The Union Budget 2025–26 has allocated Rs 2,000 crore to accelerate AI adoption, along with Rs 500 crore for establishing a Centre of Excellence in AI for Education. The Production Linked Incentive (PLI) scheme is also boosting innovation in IT hardware manufacturing.States are playing a significant role, too. Telangana’s IT exports from Hyderabad reached Rs 2.68 lakh crore ($32.2 billion) in FY24, with tech employment rising by 11.2% to 946,000.
The road to $500 billion by 2030
India’s technology industry is poised to double its revenue to $500 billion by 2030, according to the India Brand Equity Foundation (IBEF). This would make tech account for 10% of India’s GDP, driven by growing global demand, an expanding product ecosystem, and strategic investments in AI, cloud, and cybersecurity.
Homegrown software product firms are set to scale globally, with the sector projected to reach $100 billion by 2025. Major private investments—such as Reliance’s mega data center in Gujarat and TCS’s Rs 1,625 crore expansion in Bengaluru—reflect strong confidence in the industry’s future.
