Indian Technology Sector Achieves 3.8% Growth, Reaching $254 Billion in FY24 and Employing 5.43 Million Individuals
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New Delhi, Jan 3 (NationPress) In the face of a challenging year, the Indian technology sector, with a valuation of $254 billion, recorded a growth of 3.8 percent (year-on-year) for FY24, according to a report published on Friday.
During this period, the tech sector employed 5.43 million professionals, reflecting a growth of 1.1 percent in FY24, with an emphasis on skills related to Generative AI, cloud, and cybersecurity.
The expansion into tier 2 and tier 3 cities is considered crucial for addressing talent shortages, as noted in Grant Thornton Bharat's '2025 Tech Trends Report'.
As stated by Raja Lahiri, partner and technology industry leader at Grant Thornton Bharat, "Technology firms in India will need to tackle business growth challenges while also capitalizing on new opportunities arising from Generative AI and emerging technologies in 2025."
The country's emphasis on GenAI and Engineering Research and Development (ER&D) services spurred a growth rate of 7.4 percent, with sectors such as aerospace, defense, and automotive spearheading digital engineering initiatives.
Additionally, with 1,700 global capability centers (GCCs), India continues to serve as a hub for technological innovation, supported by robust investor interest and a thriving start-up ecosystem, the report highlights.
Lahiri further added, "India is poised to maintain its dominance in the global technology services market, fueled by the availability of extensive tech and engineering talent, alongside significant impacts on business and digital transformation for global clients."
Despite facing obstacles, the industry's vast talent pool and the increasing adoption of generative AI, SaaS, and digital transformation initiatives position it for a moderate resurgence in 2025.
The report emphasizes that Indian companies must cultivate a culture centered around excellence in quality, innovation, and customer experience to lead in the tech landscape in the upcoming year.
In FY24, the Indian tech industry confronted slowing revenue growth and escalating employee costs, exacerbated by high attrition rates during the pandemic.
The report indicates, "Companies must strike a balance between cost control and strategic investments in innovation to navigate economic uncertainties and retain competitiveness in the evolving tech environment."
India's deeptech ecosystem, comprising over 3,600 start-ups, showcases immense potential in fields such as AI, space technology, and health technology.
"Effective deployment of Gen AI, which includes careful use-case selection, strong governance, and operational efficiency, enables organizations to realize long-term value creation, establishing AI as a fundamental aspect of the digital transformation journey," the report concluded.
