Software market revenue in India 2016-2028, by segment

The software market was around 8.4 billion U.S. dollars in India in 2023. Within the segments, the enterprise software generated the highest revenue at 3.5 billion U.S. dollars in 2023. This was followed by application development software, and productivity software. It was estimated that by the year 2028, the software market in India would grow to 14.4 billion dollars. 

IT industry in India

India’s IT industry is one of the leading sectors contributing towards India’s post-liberalization economic growth. The sector is a significant employer to about three million people and also a major contributor to the Indian economy, with around 1.2 percent in financial year 1998, to about 7.5 percent in financial year 2023. At present, the IT and IT enabled services industry has three major sectors: software services, and customized software development; Business Process Outsourcing (BPO); and research and development (R&D) as well as engineering services.

Applications sector

The leading software segments in terms of revenue are engineering applications, collaborative applications, customer relationship management applications, enterprise resource management applications, and content workflow and management applications. Although the coronavirus pandemic had a negative impact on Indian economy including the software market, it also served as a driver for many enterprises in reevaluating their IT strategies to make steps toward digital business models.