IT Industry Growth
22-11-24
The IT spending in India is estimated to record a double-digit growth of 11.1% in 2024, totalling US$ 138.6 billion up from US$ 124.7 billion last year. By 2026, widespread cloud utilisation can provide employment opportunities to 14 million people and add US$ 380 billion to India’s GDP.
- Global growthThe global IT market is expected to grow from $8,508.63 billion in 2023 to $9,039 billion in 2024, with a compound annual growth rate (CAGR) of 6.2%.
- Indian growthThe Indian IT industry is expected to grow to US\$350 billion by 2026 and contribute 10% to the country’s GDP. In 2022, the Indian IT industry’s revenue reached US\$227 billion, a 15.5% year-on-year growth.
- Key drivers of growthThe growth of the IT industry is driven by several factors, including:
- AI and ML: The demand for AI and machine learning (ML) is expected to be a key driver of the IT sector in the coming years.
- Digital transformation: The push for digital transformation and innovation has accelerated, especially during the COVID-19 pandemic.
- Cybersecurity: Cybersecurity concerns have contributed to the growth of the IT industry.
- AI and ML: The demand for AI and machine learning (ML) is expected to be a key driver of the IT sector in the coming years.
The source for the data used is a mixture of interviews in India and Department of Electronics/IT reports for the earlier data up to late 1990s; and the invaluable Dataquest (India) annual review of the IT industry (the “DQ Top 20”) from that point on.
IT industry boosting India’s growth
Indian IT industry has grown rapidly with an exponential growth rate after the economic reform of 1991-92. Indian IT companies have set up thousands of centres within Indian and around 80 countries across the world. The majority of global corporations are sourcing IT-ITES from the Indian IT industry, it accounts for approximately 55 percent of the global service sourcing market (US$ 200-250 billion) in 2019-20. The market size (especially export) of the IT industry has grown manifold from approx. 67 billion US dollars in 2008-09 to 191 billion US dollars in 2019-20 (Graph 1). The revenue is further expected to grow in the coming years with an accelerating growth rate and expected to reach 350 billion US dollars by 2025.
