From powering a staggering $245 billion in revenue to shaping the global tech landscape, India's IT industry stands as a colossal engine of economic transformation, innovation, and opportunity.
Key Takeaways
- In FY23, the Indian IT-BPM industry achieved a revenue of USD 245 billion, marking a growth of 15.4% YoY
- The IT services segment contributed 59% to the total Indian IT industry revenue in FY23, amounting to approximately USD 144.55 billion
- Indian IT exports reached USD 194 billion in FY23, representing 79% of the total industry revenue
- Indian IT-BPM industry directly employs over 5.4 million people as of FY23
- Women constitute 36% of the Indian IT workforce in 2023, totaling about 1.94 million females
- Average salary in Indian IT sector is INR 11.45 lakhs per annum in 2023
- IT exports from India generated USD 194 billion in FY23
- USA accounts for 61% of Indian IT exports valued at USD 118 billion in FY23
- Europe contributes 27% to Indian IT exports, approx USD 52 billion in FY23
- Indian IT industry expected to grow at 9-10% CAGR to reach USD 350 billion by FY25
- IT services segment to grow 13.6% in FY24 to USD 162 billion
- Indian SaaS market projected to hit USD 50 billion by 2030 at 35% CAGR
- Indian IT FDI inflows reached USD 54 billion from 2000-2023
- PE/VC investment in Indian IT startups USD 24 billion in 2023
- R&D spend by top Indian IT firms 8.5% of revenue in FY23 avg
India's IT industry continues strong growth with diverse sectors fueling its expansion and employment.
Employment and Workforce
- Indian IT-BPM industry directly employs over 5.4 million people as of FY23
- Women constitute 36% of the Indian IT workforce in 2023, totaling about 1.94 million females
- Average salary in Indian IT sector is INR 11.45 lakhs per annum in 2023
- There are over 1.5 million software developers in India in 2023
- GCCs in India employ 1.6 million professionals as of 2023
- Fresher hiring in Indian IT dropped to 35% of total hires in FY23
- Upskilling initiatives reached 1.2 million IT employees in 2023 via Nasscom FutureSkills
- IT attrition rate in India averaged 17.2% in FY23
- Over 400,000 IT jobs added in India during FY23
- Tier-2/3 cities account for 40% of new IT hires in 2023
- 25% of Indian IT workforce is in AI/ML roles by 2023 end
- Contract workforce in Indian IT is 30% of total employment in FY23
- Average experience of IT workforce in India is 7.5 years in 2023
- 1.3 million cybersecurity professionals needed in India by 2025, current gap 500k
- Women leadership in IT firms reached 18% in 2023, up from 15% in 2022
- IT engineers aged 25-34 form 55% of workforce in 2023
- 2.5 million IT-BPM jobs projected by 2025 in India
- Disability inclusion in IT workforce at 1.2% in FY23
- Remote work adoption led to 20% hybrid workforce in IT by 2023
- Cloud skills gap affects 70% of IT hiring in 2023 India
- Entry-level IT salaries rose 12% to INR 4.5 lakhs in 2023
- Mid-level IT professionals (5-10 yrs exp) earn avg INR 15 lakhs in 2023
- Senior IT roles salary avg INR 35 lakhs per annum in FY23
- 15% of IT workforce is gig workers in India 2023
Employment and Workforce Interpretation
India's IT sector is a booming, turbulent, and rapidly maturing giant, where millions find opportunity amid a whirlwind of hiring surges, stubborn attrition, ambitious upskilling, and a slow-but-steady climb toward greater diversity and inclusion.
Export Figures
- IT exports from India generated USD 194 billion in FY23
- USA accounts for 61% of Indian IT exports valued at USD 118 billion in FY23
- Europe contributes 27% to Indian IT exports, approx USD 52 billion in FY23
- Indian IT services exports grew 16.8% YoY to USD 153 billion in FY23
- BPM exports from India reached USD 41 billion in FY23, up 13.2%
- Indian GCC exports valued at USD 46 billion in 2023
- Software product exports from India USD 18 billion in FY23
- Top 5 Indian IT firms exported USD 120 billion combined in FY23
- UK market share in Indian IT exports is 18%, USD 35 billion FY23
- Australia IT imports from India USD 6.5 billion in 2023
- Germany accounts for USD 12 billion of Indian IT exports in FY23
- Indian IT exports to Canada reached USD 8 billion in 2023
- Japan IT services from India USD 7.2 billion FY23
- Middle East IT exports from India USD 4.5 billion in 2023
- Singapore hub for Indian IT exports USD 10 billion routed in FY23
- BFSI sector drives 35% of Indian IT exports at USD 68 billion FY23
- Healthcare IT exports USD 15 billion from India in 2023
- Retail IT exports USD 20 billion in FY23 India
- Manufacturing exports in IT services USD 25 billion FY23
- Engineering services exports USD 35 billion from India 2023
Export Figures Interpretation
The Indian IT industry has so firmly woven itself into the global digital fabric that it now essentially functions as the world's back-office brain trust, with over half its impressive $194 billion export revenue coming from keeping America's tech lights on and the rest from efficiently outsourcing Europe's and the world's most complex problems.
Growth Rates and Projections
- Indian IT industry expected to grow at 9-10% CAGR to reach USD 350 billion by FY25
- IT services segment to grow 13.6% in FY24 to USD 162 billion
- Indian SaaS market projected to hit USD 50 billion by 2030 at 35% CAGR
- GCC revenue to double to USD 100 billion by 2030 in India
- AI market in India to grow at 33% CAGR to USD 17 billion by 2027
- Cloud market India CAGR 24% to USD 17 billion by 2027
- Cybersecurity market to reach USD 10.9 billion by 2028 at 15% CAGR
- Data center capacity to triple to 2 GW by 2026 in India
- Digital economy to contribute 20% to India's GDP by 2026
- Startup ecosystem in IT to reach 100,000 firms by 2025
- Tier-2 cities IT growth at 20% vs 10% metros in FY24 projection
- 5G adoption to drive USD 50 billion IT spend by 2025
- EV-related IT services to grow 40% CAGR to USD 5 billion by 2027
- GenAI adoption to add USD 450-500 billion to Indian economy by 2025
- Fintech market to USD 150 billion by 2025 at 20% CAGR
- Edtech to reach USD 10 billion by 2025 in India
- Healthtech growth 25% CAGR to USD 50 billion by 2030
- Agritech IT projection USD 24 billion by 2025
- Logistics tech to USD 7 billion by 2027 at 28% CAGR India
- Retail tech CAGR 18% to USD 20 billion by 2026
Growth Rates and Projections Interpretation
While India's entire IT industry is sprinting toward a $350 billion horizon, its SaaS, AI, and cloud sectors are practically on rocket fuel, and every sector from finance to farming is now shouting "digital or die," proving the nation isn't just outsourcing work but openly annexing the future.
Investments and R&D
- Indian IT FDI inflows reached USD 54 billion from 2000-2023
- PE/VC investment in Indian IT startups USD 24 billion in 2023
- R&D spend by top Indian IT firms 8.5% of revenue in FY23 avg
- GCC investments USD 20 billion capex in India 2023-25 projected
- AI patents filed by Indians 25,000+ since 2013
- Govt Digital India budget allocation INR 12,000 crore in FY24
- Startup India fund utilized INR 10,000 crore for IT ventures by 2023
- Cloud infra investments USD 4 billion by hyperscalers in India 2023
- Semicon mission allocation INR 76,000 crore for IT hardware R&D
- Nasscom research grants USD 50 million for IT innovation in 2023
- Corporate venture capital in IT USD 8 billion in 2023 India
- IP filings in IT sector 80,000 in FY23 by Indian firms
- Quantum computing R&D funding INR 6,000 crore govt pledge 2023-30
- Green IT initiatives investment USD 2 billion in FY23
- Edtech VC funding USD 4 billion in 2023 peak year
- Fintech investments USD 6.5 billion in Indian IT ecosystem 2023
- Healthtech R&D spend USD 1.2 billion by IT firms FY23
- Space tech IT investments USD 500 million in 2023 startups
- Deeptech funding in IT USD 1.8 billion 2023 India
Investments and R&D Interpretation
India's tech sector is no longer just the world's back office; it's now a multi-billion dollar epicenter where global capital, homegrown innovation, and government ambition are feverishly co-authoring the future, from quantum leaps to green code.
Revenue and Market Size
- In FY23, the Indian IT-BPM industry achieved a revenue of USD 245 billion, marking a growth of 15.4% YoY
- The IT services segment contributed 59% to the total Indian IT industry revenue in FY23, amounting to approximately USD 144.55 billion
- Indian IT exports reached USD 194 billion in FY23, representing 79% of the total industry revenue
- The BPM segment of Indian IT industry generated USD 48 billion in revenue in FY23, growing at 14.5% YoY
- Domestic IT spending in India is projected to reach USD 160 billion by 2025, driven by digital transformation
- Nasscom estimates the Indian IT market size at USD 254 billion for FY24 with a 3.8% growth projection
- The engineering R&D services market in India stood at USD 42 billion in FY23
- Indian SaaS industry revenue crossed USD 12 billion in 2022, with 1,500+ firms
- IT product revenue in India was USD 24 billion in FY23, growing 10% YoY
- Cloud services market in India reached USD 8.3 billion in 2023
- The Indian IT industry's GDP contribution was 7.5% in FY23
- Hardware market in Indian IT sector valued at USD 25 billion in 2023
- Fintech IT spending in India hit USD 9.2 billion in 2023
- Indian data center market revenue was USD 5 billion in 2023, projected to grow to USD 10.7 billion by 2027
- Cybersecurity market in India reached USD 3.5 billion in FY23
- Indian IT retail tech spend was USD 2.8 billion in 2023
- Telecom IT services revenue in India stood at USD 15 billion in FY23
- Healthcare IT market in India valued USD 4.2 billion in 2023
- Edtech IT revenue in India crossed USD 3 billion in 2023
- Logistics IT market in India at USD 2.5 billion in FY23
- Manufacturing IT spend in India reached USD 6.8 billion in 2023
- Indian IT BPM market share globally is 55% in 2023
- Enterprise software market in India USD 7.1 billion in 2023
- Indian AI market size was USD 7.8 billion in 2023
- Big Data market in India valued USD 4.5 billion in FY23
- IoT market revenue in India USD 3.2 billion in 2023
- Blockchain IT market in India at USD 1.2 billion in 2023
- AR/VR market in Indian IT sector USD 1.8 billion in FY23
- 5G-related IT services market USD 2.1 billion in 2023 India
Revenue and Market Size Interpretation
While India’s IT industry continues to confidently export its digital prowess for the world, it’s also quietly building a formidable and complex digital fortress at home, brick by virtual brick.
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