Total export and domestic market size of IT industry in India FY 2015-2021

India was the leading outsourcing destination in the world, accounting for more than half of the market of the global information technology services in financial year 2021. The IT & BPM sector accounted for around eight percent of India’s GDP the same year. Rapid digitalization and transition to remote working helped the industry to stabilize its growth while facing the impact of the coronavirus pandemic.

IT sector at a glance

The Indian government has been very supportive of the IT sector, providing various tax exemptions and financial benefits, which enabled India to become the home of many major IT companies, like Tata Consultancy Services, Infosys, Wipro, L&T Infotech, Mindtree, and Tech Mahindra. India’s IT-BPM industry employed around 4.8 million personnel in financial year 2022. The IT spending of the country in 2023 was estimated to be around 110 billion U.S. dollars.

Road Ahead

New technologies like artificial intelligence and robotic process automation offer new opportunities for IT companies in India to grow. The global AI market revenue is forecast to reach more than half a trillion U.S. dollars by the end of 2024. India’s IT industry has been stably growing over the years in both the domestic and export markets and is expected to continue the growth trend in the upcoming years.