Despite a challenging year, India’s technology industry has achieved remarkable growth. Valued at $254 billion, the industry saw a 3.8 percent year-on-year increase in FY24, according to a report released on Friday.
The tech sector employed 5.43 million professionals, with a 1.1 percent growth rate in FY24, focusing on Generative AI, cloud, and cybersecurity skills. The expansion into tier 2 and 3 cities is considered crucial for bridging talent shortages, as highlighted in Grant Thornton Bharat’s ‘2025 Tech Trends Report’.
“As far as India is concerned, technology companies will need to navigate business growth challenges as well as seize the new opportunities from Generative AI and new tech in 2025,” stated Raja Lahiri, partner and technology industry leader at Grant Thornton Bharat.
India’s focus on Generative AI and Engineering Research and Development (ER&D) services led to a 7.4 percent growth, with aerospace, defense, and automotive sectors spearheading digital engineering projects. With 1,700 global capability centers (GCCs), India continues to be a hub for tech innovation, supported by investor interest and a robust start-up ecosystem.
“India is expected to continue to dominate the global technology services market driven by the availability of massive tech, engineering talent as well as high-quality business and digital transformation impact on global clients,” Lahiri added.
Despite challenges, the vast talent pool and growing adoption of Generative AI, SaaS, and digital transformation projects position the industry for moderate recovery in 2025. Indian companies are advised to foster a culture of excellence in quality, innovation, and customer experience to lead the tech world in the coming year.
The Indian tech industry faced slowing revenue growth and rising employee costs in FY24, exacerbated by high attrition rates during the pandemic. “Firms must balance cost containment with strategic investments in innovation to navigate economic uncertainties and maintain competitiveness in the evolving tech landscape,” the report mentioned.
India’s deeptech ecosystem, comprising over 3,600 start-ups, showcases immense potential in areas such as AI, space tech, and health tech. “Strategic Gen AI deployment, encompassing use-case selection, robust governance, and operational efficiency, positions organizations to achieve long-term value creation, making AI a cornerstone of the digital transformation journey,” the report concluded.
