(IANS): The technology sector in India grew by 3.8% in FY24, reaching a valuation of $254 billion, despite a challenging economic environment.
According to the ‘2025 Tech Trends Report’ by Grant Thornton Bharat, the sector employed 5.43 million professionals during the year, marking a 1.1% growth in employment. Key areas of focus included generative AI, cloud, and cybersecurity skills.
Expansion into tier-2 and tier-3 cities is being viewed as a potential solution to bridge talent shortages in the industry.
“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,” said Raja Lahiri, partner and technology industry leader, Grant Thornton Bharat.
The country’s focus on generative AI and Engineering Research and Development (ER&D) services contributed to 7.4% growth in these areas, with aerospace, defense, and automotive sectors driving digital engineering projects. India remains a hub for technological innovation, with 1,700 global capability centers (GCCs), supported by investor interest and a strong start-up ecosystem.
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“India is expected to continue to dominate the global technology services market driven by the availability of massive tech, engineering talent as well as high-quality business and digital transformation impact on global clients,” Lahri added.
India’s dominance in the global technology services market is attributed to its vast pool of tech and engineering talent. The sector’s ability to deliver business and digital transformation solutions continues to make it a preferred destination for global clients.
The report acknowledged challenges such as slowing revenue growth, high employee costs, and the effects of elevated attrition rates during the pandemic. Companies are advised to balance cost containment with strategic investments in innovation to navigate economic uncertainties.
The Indian tech industry faced slowing revenue growth and rising employee costs in FY24, spurred by high attrition rates during the pandemic.
India’s deep tech ecosystem, with over 3,600 start-ups, shows potential in fields such as AI, space technology, and health tech. Strategic adoption of generative AI, focusing on use-case selection, governance, and operational efficiency, is viewed as a pathway to long-term value creation and digital transformation.
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