On the occasion of National Technology Day, India has set an ambitious target to more than double its technology sector revenue to $500 billion by 2030. The move is expected to significantly boost the country’s GDP contribution from the tech industry, aiming to reach 10% over the next five years.
The growth outlook for FY2024-25 shows strong momentum, with the industry projected to generate $283 billion in total revenue—a 5.1% year-on-year increase. Of this, exports are expected to exceed $200 billion, while domestic revenue is anticipated to rise to $60 billion, reflecting a 7% growth. Additionally, the sector is forecast to add 126,000 new jobs, bringing the total tech workforce to 5.8 million.
Artificial intelligence (AI) is emerging as a key growth engine. According to NASSCOM’s Annual CXO Survey, 82% of enterprise leaders intend to increase digital spending by more than 5% in 2025. This optimism continues into FY2026, with 77% of technology providers forecasting higher growth, although only 45% expect a proportional increase in hiring.
Government initiatives are playing a crucial role in accelerating this growth. The Union Budget 2025–26 has earmarked ₹2,000 crore for boosting AI adoption and ₹500 crore for the creation of a Centre of Excellence in AI for Education. Furthermore, the Production Linked Incentive (PLI) scheme is driving innovation in IT hardware manufacturing.
State-level initiatives are also contributing to the sector’s momentum. In Telangana, for instance, IT exports from Hyderabad hit ₹2.68 lakh crore ($32.2 billion) in FY24, with tech-related employment growing by 11.2% to reach 946,000 people.
India’s software product segment is expected to hit $100 billion by 2026, fuelled by international expansion and growing investments in AI, data analytics, and cloud technologies. Private sector confidence remains high, as demonstrated by major investments such as Reliance’s large-scale data centre project in Gujarat and TCS’s ₹1,625 crore expansion in Bengaluru.
Commemorating National Technology Day also brought attention to India’s 1998 Pokhran nuclear tests—an event symbolising its scientific and strategic prowess. Defence Minister Rajnath Singh and the Defence Research and Development Organisation (DRDO) paid homage to the nation’s scientists and engineers, reaffirming the government’s commitment to technological advancement.
With the combined push from government policy, industry investment, and AI-led transformation, India is charting a bold course toward becoming a global technology powerhouse by the end of the decade.This report is brought to you by ETManufacturing
