IT & ITEs

Introduction Market Landscape FDI Policy Government Initiatives Emerging Opportunities

Introduction

India is recognized as a global leader in IT services and business process management (BPM). The country accounts for approximately 55% of the global services sourcing market.

The IT-BPM sector in India is estimated to reach US$ 245 billion in FY23 and employ over 5 million professionals. India continues to be the world's leading sourcing destination, accounting for approximately 55% of the global services sourcing market.

Market Landscape

India's IT industry revenue is estimated to reach US$ 245 billion in FY23. The domestic IT-BPM market is expected to reach US$ 50 billion in FY23.

India has over 1,500 Global Capability Centers (GCCs) employing over 1.5 million professionals. The country is home to more than 20,000 startups making it the third-largest startup ecosystem globally.

The IT exports from India are expected to reach US$ 195 billion in FY23. The sector contributes to about 8% of India's GDP.

Market Landscape

FDI Policy

100% FDI is allowed under automatic route in IT and ITeS sectors.

  • No minimum capital requirement
  • No prior approval required
  • Can be set up as wholly-owned subsidiaries
  • SEZ benefits available for qualifying units
  • Simplified procedures for company incorporation

Government Initiatives

Key government initiatives for the IT-ITeS sector:

  • Digital India program for digital transformation
  • Software Technology Parks of India (STPI) scheme
  • PLI scheme for IT hardware manufacturing
  • National Policy on Electronics 2019
  • India BPO Promotion Scheme (IBPS) for tier 2 and tier 3 cities
  • NIXI (National Internet Exchange of India) to boost internet infrastructure
  • National AI Portal and responsible AI principles

Emerging Opportunities

India offers vast opportunities in emerging technologies including artificial intelligence, machine learning, cloud computing, cybersecurity, blockchain, IoT, and data analytics.

The country is rapidly evolving as a hub for deep tech innovations, with growing investments in R&D centers, innovation labs, and technology startups across fintech, healthtech, edtech, and agritech sectors.

$245B

Revenue FY23

India's IT-BPM sector revenue is estimated to reach US$ 245 billion in FY23, reinforcing its position as a global IT powerhouse.

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