Indian tech industry hits $254Bn in FY24: Grant Thornton Bharat
NEW DELHI, INDIA — The Indian technology sector demonstrated resilience in FY24, achieving a valuation of $254 billion with a 3.8% year-on-year growth.
The industry also expanded its workforce to 5.43 million professionals, reflecting a 1.1% employment growth driven by demand for expertise in generative artificial intelligence (GenAI), cloud computing, and cybersecurity.
Generative AI and ER&D propel innovation
GenAI and engineering research and development (ER&D) services were key drivers of the sector’s 7.4% growth in niche areas such as aerospace, defense, and automotive digital engineering projects.
According to the ‘2025 Tech Trends Report’ by Grant Thornton Bharat, Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat, remarked, “As far as India is concerned, technology companies will need to navigate the business growth challenges as well as seize the new opportunities from Generative AI and new tech in 2025.”
Tier 2 and 3 cities: Bridging talent gaps
To address talent shortages, the industry is expanding into tier 2 and tier 3 cities. This strategy leverages India’s vast talent pool while reducing dependency on metropolitan hubs.
With over 1,700 global capability centers (GCCs), India continues to solidify its position as a global tech innovation hub.
Deeptech ecosystem gains momentum
India’s deep tech ecosystem, comprising over 3,600 start-ups, is thriving in areas such as artificial intelligence, space technology, and health technology. Strategic deployment of generative AI is highlighted as a cornerstone for long-term value creation.
“Robust governance, and operational efficiency, positions organizations to achieve long-term value creation, making AI a cornerstone of the digital transformation journey,” the report noted.
Challenges persist but recovery expected
The sector faced challenges like slowing revenue growth and rising employee costs in FY24, partly due to high attrition rates during the pandemic. However, experts predict moderate recovery in 2025 as companies balance cost containment with investments in innovation.
Key growth areas include software as a service (SaaS) solutions, digital transformation projects, and GenAI applications.
India’s global leadership in tech services
India remains a trusted global leader in technology services due to its skilled workforce and robust start-up ecosystem. The country’s focus on digital transformation has made it a preferred destination for global clients seeking high-quality business solutions.
With continued investor interest and government support for emerging technologies like spatial computing and AI, the Indian tech industry is poised for sustained growth.
By leveraging its strengths in innovation and talent development, India is expected to dominate the global technology landscape well into the future.
Read more here.
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