Tech industry estimated to post 3.8% YoY growth to $254 billion in FY24: Report

Bengaluru: The Indian technology industry's revenue, including hardware, is estimated to surpass $254 billion on the back of a 3.8% year-on-year growth in financial year 2023-24, according to a new report released by global consultant Deloitte on Wednesday. 

Within this, engineering research and development (ER&D) contributed a whopping 48% or $2.88 billion to the $6 billion export revenue addition. 

“India’s tech ecosystem is advancing with increased software exports, tech workforce growth, tier-2 city development, government support and improved infrastructure, solidifying its position as a reliable tech talent hub,” the report noted.

Going forward, this calendar year, global capability centres are poised to assert their dominance in a testament to India’s increasing abilities in addressing international tech needs, Deloitte said. From over 1,600 currently, their number is expected to touch 2,500 to employ 4.5 million people and exceed $100 billion in market size by 2030.

Deloitte listed spatial and quantum computing, Generative AI, DevEx, cybersecurity and modernisation of legacy systems as some of the major trends that will play a key role across businesses in 2024.

According to the report, the Indian GenAI market is projected to post a compound annual growth rate of over 24.4% between 2023–2030, potentially adding $359–438 billion to the country’s gross domestic product by 2029–2030. The report highlighted that with a 2.7 times growth in AI-driven initiatives between 2023-24 and more than 6,50,000 employees set to undergo GenAI training, the country is marking a concerted effort to prepare for an AI-driven future.

Meanwhile, enterprise adoption of quantum computing technology, which currently stands at approximately 12%, is expected to reach 35–45% over the next decade, generating an estimated $280–310 billion for the economy.

The report also underscored that India is projected to have about 18 million science, technology, engineering and mathematics graduates by the year 2027. “With 2 million IT and engineering professionals currently based in India’s top 15 tier-2 cities, the country is undergoing a tech-driven transformation,” the report said, adding that success in India’s dynamic technology ecosystem hinges on attracting and retaining top-tier tech talent.