Despite a difficult year, India’s technology industry, worth $254 billion, grew 3.8% (y-o-y) in FY24, a report on Friday said. The technology industry employs 5.43 million professionals, with a FY24 growth rate of 1.1%, with a focus on generative AI, cloud, and cybersecurity skills.
According to Grant Thornton Bharat’s 2025 Technology Trends Report, expanding into tier 2 and 3 cities is seen as important to fill the talent gap. “As far as India is concerned, technology companies will need to not only seize new opportunities from generative AI and new technologies in 2025, but also overcome business growth challenges,” said Grant Thornton Bharat, partner and technology industry leader. said Raja Lahiri.
The country focused on GenAI and engineering research and development (ER&D) services, with digital engineering projects led by aerospace, defense, and automotive driving 7.4% growth. Moreover, with 1,700 global capability centers (GCCs), India remains a hub for innovation, supported by investor interest and a strong startup ecosystem, the report said.
“India is expected to continue to dominate the global technology services market due to availability of large technology, engineering talent and high-quality business and digital transformation impact on global customers.” Lari added.
Despite the challenges, a modest recovery is expected in 2025 due to the industry’s vast talent pool and increased adoption of generative AI, SaaS, and digital transformation projects. According to the report, Indian companies need to build and foster a culture of excellence in quality, innovation. Leading customer experience in the world of technology in the new year.
India’s technology industry faced slowing revenue growth and rising labor costs in FY24 due to high employee turnover during the pandemic. “Companies need to balance cost containment with strategic investments in innovation to navigate economic uncertainty and remain competitive in an evolving technology environment,” the report says. .
India’s deep tech ecosystem of over 3,600 startups shows immense potential in areas such as AI, space technology and health tech. “Strategic Gen AI adoption, including use case selection, robust governance, and operational efficiency, will enable organizations to achieve long-term value creation, making AI the cornerstone of their digital transformation efforts,” it added.
