What is the future of the IT industry in India?

What is the future of the IT industry in India?

What is the future of the IT industry in India?

The 21st century is likely to be influenced by information technology, with Indias emerging as a worldwide attraction and as a technology giant. Not only has information technology helped the countrys economic success, but it has also made the government more efficient and accessible. It has made government services and information more accessible and affordable. Information technology has also improved the administration and delivery of government services, such as health care, educational information, consumer rights and services, and so on, by increasing transparency. Technology has developed hundreds of thousands of tools and resources, allowing us to have access to any piece of information at our fingertips.Today, around 4.33 billion individuals actively use the internet. That equates to 56% of the world population, with India ranking second. And it is only going to get better from here. IT technology in India is growing at an astounding pace, and those who are unable to keep up are simply left behind. The IT sector is the backbone that allows our economy to grow rapidly and create millions of opportunities.In this article, we will discuss” What is the future of the IT industry in India?

How the IT sector has emerged as a pillar of modern India

The IT industry has gone a long way from its "creation." It provided less than 5% of the countrys GDP until around ten years ago; now, it provides roughly twice as much. In comparison, the automobile industry contributes around 8% of the countrys GDP.Revenues in the IT industry are estimated to be $190 billion, up 7.7 percent year on year, and are expected to reach $350 billion by 2025.

In addition, the industry has created 4 million jobs and offered indirect employment to 10 million people. TCS, Indias largest IT services company, has created over 4 lakh employment, while Infosys already has 2 lakh employees.

 Between April 2000 and March 2020, Indias computer software and hardware business received $44.91 billion in total Foreign Direct Investment (FDI). According to data released by the Department for Promotion of Industry and Internal Trade, the industry ranked second in terms of FDI inflows (DPIIT).

 The Indian government has been quite active in providing incentives to the IT and ITeS industries. It published a national policy on software services in February 2019 to promote India as a software development hub. It has been designated as one of the 12 flagships for the service sectors, for which a plan of action is being prepared. According to the India Brand Equity It has also established a 5,000-crore fund to realize the potential of five flagship service industries. In addition, the government has announced plans to start a national artificial intelligence program and establish a national AI portal. You can join rednwhite to enroll for Diploma in Accounting & Taxation course in Surat.

What are the prospects for the IT budget in India?

It is expected that spending on information technology will reach 93 billion US dollars in 2021 (an increase of 7.3% year over year), and then it will increase to 98.5 billion US dollars in 2022. According to the National Association of Software and Service Companies, the organization hired around 1.38 lakh new employees per week over one year, bringing the total number of workers to 44.7 lakh.

As a result of the corona crisis in 2020, India has emerged stronger and more relevant than before. According to a statement from NASSCOM president Debjani Ghosh that was published in Bloomberg Quint, "We have been the forerunners in leading the fight against COVID." The wide spread of the coronavirus caused a decrease in flourishing while simultaneously impacting expenditures on technology. The lockdown that was caused by the virus led to a rethinking of the delivery of the work, which resulted in the work being shifted from campuses to homes.

Innovation, on the other hand, is the single most important aspect in ensuring the uninterrupted expansion of the information technology industry. Information technology businesses need to constantly work toward developing something unique and must adapt their practices to meet the requirements of an ever-changing environment. The information technology industry has to show that it can be resilient in the face of problems and work toward providing its customer base with an increasing number of technological solutions that address its needs from start to finish.

Where is India in this everlasting IT race?

In a nutshell, at the very top, year after year, India creates nearly 1.5 million engineers—a figure that is only increasing. That implies that India has some of the worlds top tech talent. That is not all. India is also the worlds biggest sourcing destination, accounting for more than 55% of the US sourcing industry. India is becoming the worlds digital hub, with over 1,000 global delivery hubs spread across 80 nations.

Bangalore, India, is one of the most dynamic cities in the world, commonly known as the Silicon Valley of Asia. Bangalore is home to global software corporations, hundreds of start-ups, and IT firms that use cutting-edge technology to bring innovative products to market. The future is here, and it is definitely in India. Popularity of Android App Development Course In Ahmedabad has also increased.

How the IT industry is boosting Indias growth

Following the 1991-92 economic reform, the Indian IT industry grew at an exponential rate. Indian IT firms have established thousands of centers in India and around 80 countries around the world. The bulk of global firms source IT-ITES from India, which accounts for around 55% of the global service sourcing market (US$ 200-250 billion) in 2019-20. The IT industrys market size (particularly exports) has increased dramatically, from around 67 billion US dollars in 2008-09 to 191 billion US dollars in 2019-20. The countrys GDP is expected to expand at an accelerating rate in the future years, reaching 350 billion US dollars by 2025.

The unique aspect of Indias IT sector is that, in addition to expanding in terms of market size, it is also progressively contributing a large proportion to Indias gross domestic product (GDP), thus increasing the countrys growth and development. The IT sector contributed roughly 8% of Indias overall GDP in 2017-18, up from 0.4 percent in 1991-92. This percentage is expected to increase to 10% by 2025.

Over time, Indias digitally competent pool has expanded to account for over 75% of global digital talent. More than one million people work for Indias four largest IT firms (TCS, Infosys, Wipro, and HCL Tech). New IT-based technologies like telemedicine, remote monitoring, and so on are increasing in demand in the digital economy. The implementation of fifth-generation (5G) communication technologies, as well as the increasing adoption of artificial intelligence, big data analytics, cloud computing, and the Internet of Things (IoT), will increase the size of Indias IT industry. As the scale of Indias digital economy grows, IT businesses are creating centers in tier II and tier III cities, which will boost growth and minimize inequities. 

 What can we expect in the next 20 years?

In the next twenty years, there is no doubt that technological advancement and innovative ideas will bring about major changes throughout the world. And if you are a shareholder in an IT firm, it is very essential to understand which technologies to use so that your company can continue to remain one step ahead of the competition and earn large profits. There will be a massive demand of web design course in Ahmedabad in few years as per the trends. The following are some breakthroughs in information technology that are expected to have a significant impact during the next 20 years: 

The Internet of Things (IoT)

A recent poll that was carried out revealed that more than 86 percent of respondents want to considerably boost their spending on IoT throughout the next couple of years. According to the results of the poll, businesses in the United States spent an average of $4.6 million on Internet of Things technology in 2018, intending to digitally transform their business models. The Internet of Things will play a big role in the incorporation of sensors into machinery, equipment, heating units, security systems, and pretty much everything else during the next 20 years.

Artificial Intelligence & Robotics

Even while the concept of artificial intelligence has been around for well over 60 years, it has just gained widespread attention in the last ten years. Artificial intelligence has the potential to revolutionize business strategies in a way that is unmatched by any technology.

AI is set to take over in a variety of fields, including robotics, self-driving vehicles, innovative education approaches, and even precision treatment.

Augmented Reality

The advancements in information technology over the last ten years made augmented reality no longer the thing of science fiction. While earlier, the costs associated with AR guaranteed that projects were few and far apart; now, technology has made it feasible for AR to be accessible even on the smartphone. This is a significant advancement from when AR was only available on desktop computers. The potential uses of augmented reality in the future are almost limitless and include but are not limited to the following: education, the arts, architecture, the armed forces, and navigation. There are many ar vr development course in Surat & other cities.

Cloud Computing

Almost every industry, especially education, small and medium-sized businesses, healthcare, and government, is moving toward cloud computing. In recent years, there has been a significant increase in cloud use in finance and accounting, supply chain and logistics, and IT management. As digital transformation is acknowledged as essential for the countrys progress, cloud service has a substantial presence on the internet and is fast expanding to a fully-fledged ecosystem. Its security capabilities have grown promising in the IT industry, making application data and infrastructure protection a priority.

Intelligent Automation

Intelligent Automation, the integration of AI with automation, is likely to transform the way businesses operate in practically every sector of the economy. It detects and synthesizes massive amounts of data and can automate whole processes or workflows, learning and adapting as it goes. The retail, BFSI, and CPG (Consumer Packaged Goods) industries are driving worldwide investment in intelligent automation systems. In India, it is expected that the IT industry will continue investing in automation and AI in the next few years.


Blockchain has sparked widespread interest across sectors, and numerous nations have recognized its enormous economic potential. Adoption of this disruptive technology gained pace in India in 2016 as several banks and corporate giants engaged with it across different use cases. Bitcoin is the most prevalent Blockchain use case, and it has done pretty well in the country, with multiple Bitcoin exchanges and wallets scattered around the country. So because The Indian government is the most important stakeholder and facilitator of blockchain. The Indian BFSI is at the forefront of adoption. Also you can check out our Top 10 Highest Paid IT Jobs in India blog.


I hope you now completely understand, “What is the future of the IT industry in India?" It does not stop there. The information technology industry as a whole is large beyond measure, and it is only growing. Over the past decade, India has developed as an IT hub for the worlds software firms, with Indian software companies occupying key positions in the global IT market. India has emerged as the worlds leading IT sourcing destination. The cost-effective competitiveness of Indias IT business is around three to four times that of the United States, which is its unique selling point in the global market. Despite the global economic uncertainty, Indias IT sector has consistently strengthened and accelerated its expansion. This industry consumes a huge pool of qualified Indian human resources, transforming India into a worldwide IT hub. The IT industry has played a significant role in altering the whole Indian economic and governmental environment. Indias IT industry is making headway in new disruptive technologies and will play a key role in the worlds current fourth industrial revolution.


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