Witnessing a Slow Turn

The information technology (IT) and business process management (BPM) sector has emerged as a major driver of growth for the Indian economy, playing a crucial role in boosting the country's GDP and enhancing public welfare.

Contributing 7.5 per cent to the nation's GDP in FY23, it is projected to increase its contribution to 10 per cent by 2025. India dominates the global sourcing landscape with 57 per cent share of total sourcing globally, and the sector accounts for 38 per cent of the country's total services exports.

Additionally, 60 per cent of the firms worldwide, with a majority of them on the Forbes 500 list, utilise India for their testing services. India is a top choice for establishing global capability centres (GCCs), with over 1,580 GCCs currently in the country and a talent pool exceeding 1.66 million. By 2025, more than 45 new data centres are expected to be set up. Additionally, there are 286.94 million registered users on DigiLocker in India. India's technology industry's revenue reached USD 253.9 billion at the end of the 2024 fiscal year, growing at a slower year-on-year rate of 3.8 per cent.

According to the Annual Strategic Review report by the National Association of Software and Service Companies, India's IT exports grew by 3.3 per cent in constant currency, reaching USD 199 billion in FY24. This growth rate is significantly lower than 11.4 per cent recorded the previous year, marking one of the lowest growth rates in the industry's history. Between April 2000 and December 2023, the computer software and hardware sectors attracted an FDI equity inflow of USD 98.32 billion.