Indian Tech Industry Grows 3.8% in FY24
Despite economic challenges, the Indian technology industry grew by 3.8% year-on-year in FY24, reaching a valuation of $254 billion, according to the Grant Thornton Bharat '2025 Tech Trends Report'. The sector employed 5.43 million professionals, reflecting a 1.1% increase, with demand surging for skills in generative AI, cloud computing, and cybersecurity.
Expansion into tier 2 and tier 3 cities is emerging as a key strategy to address talent shortages. Raja Lahiri, Partner and Technology Industry Leader at Grant Thornton Bharat, emphasized the need for Indian tech companies to navigate growth challenges while leveraging opportunities in generative AI and emerging technologies.
Generative AI and Engineering Research and Development (ER&D) services drove a robust 7.4% growth in niche sectors, including aerospace, defense, and automotive digital engineering projects. Additionally, India’s 1,700 global capability centers (GCCs) reinforce its status as a global innovation hub, supported by investor interest and a thriving start-up ecosystem.
India’s deeptech ecosystem, comprising over 3,600 start-ups, continues to demonstrate significant potential in areas such as artificial intelligence, space technology, and health technology. The report highlights strategic AI deployment, including operational efficiency and robust governance, as key to driving long-term value creation.
However, FY24 also presented challenges, including slowing revenue growth and rising employee costs, exacerbated by high attrition during the pandemic. Firms are urged to balance cost containment with investments in innovation to maintain competitiveness.
"India is expected to dominate the global technology services market, driven by its vast engineering talent pool and the high-quality impact of business and digital transformation for global clients", Lahiri stated.
The report calls on Indian tech firms to foster a culture of excellence in innovation, quality, and customer experience to lead the global technology space in 2025. Despite hurdles, the industry’s adoption of SaaS, digital transformation, and generative AI positions it for moderate recovery in the coming year.
Strategic investments in tiered markets and emerging technologies could further solidify India’s leadership in the evolving global tech landscape.
