IT & BPM Industry in India

India's IT & BPM industry has become one of the most significant growth catalysts of the Indian economy, significantly contributing to GDP and exports, employments, and public welfare. Driven by the increase digital adoption, government support initiatives like Digital India, and a growing pool of digitally skilled talent, this industry has secured its position as the world's top destination for IT-BPM services. Key trends include the rise of emerging hubs beyond traditional metros, increased focus on artificial intelligence (AI) adoption, cloud modernisation, and expansion of Global Capability Centers (GCCs).

The IT sector in India witnessed a 16% YoY growth in hiring in April 2025, according to a report published by the job platform foundit in May 2025. India ranks 39^th position out of 133 economies, as per the 2024 edition of the Global Innovation Index (GII).

By the end of 2025, India’s first made-in-India graphics processing units (GPUs) are expected to be ready for technology demonstrations and is targeted that the productions be commercially ready by 2029 under IndiaAI Mission, budgeted at Rs. 10,372 crore (US$ 1.21 billion).

With innovative apps invading industries, one sector at a time, India is prepared for the next phase of growth in its IT revolution. India is viewed as a country having one of the largest Internet user bases and the cheapest Internet rates, with 76 crore people having access to the Internet.

Market size of IT industry in India

According to the National Association of Software and Service Companies (NASSCOM), the Indian IT industry’s revenue is on a trajectory to reach the US$300 billion mark by FY2026 with a FY2024 estimate of $254 billion and a projected $282.6 billion for FY2025. 

India's IT exports were projected to reach Rs. 17,95,920 crore (US$ 210 billion) in FY25, and a growth of 5-6% is expected in FY26, considering both the opportunities and challenges posed by generative AI.

A compound annual growth rate of 9.2% is expected from the system infrastructure software market in India is to reach a projected revenue of Rs. 178 million (US$ 20,823.6 million) by from 2023 to 2030.

By 2025, the IT spending in India is estimated to reach Rs. 8,68,700 crore (US$ 100 billion) as companies seek to expand globally.

The software product industry of India is expected to reach US$ 100 billion by 2025, with Indian companies focusing on investing internationally to expand their global footprint and enhance their global delivery centres.

The data annotation market in India stood at US$ 250 million in FY20, US market contributing 60% to the overall value and is expected to reach US$ 7 billion by 2030 due to accelerated domestic demand for AI.

Said in a report by Infomerics Ratings, India's IT industry is probable to hit US$ 350 billion by 2026 and contribute 10% towards the country's gross domestic product (GDP). By 2026, the increased use of cloud technology could create 14 million jobs and contribute Rs. 33,01,060 crore (US$ 380 billion) to India’s GDP.

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