India’s information technology industry has solidified its position as a global leader, demonstrating consistent and remarkable growth over the past decade. According to data provided by the National Association of Software and Services Companies (NASSCOM), the total revenue of the Indian IT sector is projected to reach an impressive $283 billion in the financial year 2024-25. This milestone underscores the pivotal role the IT industry continues to play in driving exports and generating employment opportunities across the nation.
Comparative figures highlight the exponential growth the sector has experienced. During the financial year 2014-15, the IT industry’s total revenue stood at $118 billion, including $100 billion derived from exports. A decade later, the industry’s projected figures for 2024-25 reflect more than double the revenue, with export earnings expected to rise to $224 billion.
The government’s proactive policies and initiatives have significantly contributed to this remarkable progress. Efforts include the establishment of 67 Software Technology Parks of India (STPI) centers and the introduction of 100% Foreign Direct Investment (FDI) to encourage growth and innovation. Targeting smaller towns and cities, the government launched the BPO Promotion Schemes, which have played a vital role in expanding IT operations beyond metropolitan hubs.
Additionally, the government unveiled the National Policy on Software Products in 2019 to promote indigenous software production. Skill development has also been a cornerstone of these efforts, with 55 centers of the National Institute of Electronics and Information Technology (NIELIT) delivering training programs designed to prepare individuals for the demands of the rapidly evolving IT landscape. FutureSkills PRIME, another key initiative, focuses on reskilling and upskilling IT professionals to maintain a globally competitive workforce.
The government’s support extends to fostering an ecosystem for start-ups and entrepreneurship. Programs such as TIDE 2.0 (Technology Incubation and Development of Entrepreneurs) and SAMRIDH (Startup Accelerator of MeitY for Product Innovation, Development, and Growth) have provided invaluable resources to budding innovators. Domain-Specific Centers of Excellence, along with initiatives like GENESIS and the India AI Mission, have further propelled the industry into the future, ensuring it remains at the cutting edge of technology and innovation.
The success of these initiatives is evident in the robust state-wise export performance of STPI-registered units. Karnataka remains a standout performer, with exports growing from $10.9 billion in 2014-15 to a remarkable $25.8 billion in 2020-21. Telangana’s IT exports have also surged, climbing from $3.9 billion in 2014-15 to $8.9 billion in 2020-21. Maharashtra, Tamil Nadu, and other states have similarly seen significant increases in IT export revenue, contributing to the sector’s overall growth trajectory.
These figures were presented by the Union Minister of State for Electronics and Information Technology during a session in the Lok Sabha, showcasing the Indian government’s commitment to supporting the IT industry’s expansive growth. With such concerted efforts, India’s IT sector continues to assert its dominance on the global stage while fostering economic development and employment opportunities domestically. The industry’s ongoing advancements reflect not only its adaptability but also its vital role in shaping India’s economic future.
