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India's tech sector poised to hit $254 billion in revenues in FY24, led by $200bn in exports

HYDERABAD: Despite the headwinds posed by global economic uncertainties, India’s tech sector is expected to clock a 3.8% growth to log in total revenues of US$ 254 billion in FY24, with exports, which are growing at 3.3%, alone poised to hit the $200 billion mark, Deloitte India’s latest Tech Trends 2024 report said.

Pointing out that a key driver of this growth is the rapidly increasing footprint of Global Capability Centres (GCC), the report, which was unveiled on Wednesday, said the Indian GCC market is on track to race past the $100 billion mark by 2030 with the number of GCCs set to grow to 2,500 and employ over 4.5 million people by then.

“GCCs are taking the lead in 2024, demonstrating India’s growing prowess in catering to international tech needs. With over 1,600 GCCs currently, India’s GCC market is growing and creating its dominance globally,” it said.

According to Deloitte, India is slated to emerge as a key player across several key domains, including spatial computing, the industrial metaverse, cloud computing, and generative AI (GenAI) thanks to its strong focus on modernisation, security, and trust.

“While cloud computing is increasingly being adopted, technological advancements such as metaverse, AI, quantum computing , and supercomputing are on the rise. This is coupled with a strong focus on data privacy, security, and trust, thanks to regulations such as the DPDP Act,” the report said.

But as enterprises increasingly look at harnessing the power of AI and GenAI, the report said though GenAI holds immense promise it also carries risks such as misinformation and synthetic media. “Enterprises must manage GenAI-related risks through integrated risk mitigation and governance processes,” it said.

Pointing out that govt initiatives under Digital India such as MeghRaj , IndiaAI and digital public infrastructure are propelling digital adoption in India, it also lauded Indian govt’s recent decision to set aside a corpus fund to drive innovations in AI through public-private partnerships, where ethical AI is one of the key focus areas.

“FY2023 was a difficult year due to uncertainties, macroeconomic and geopolitical challenges, and a global slowdown. Despite that, the Indian tech industry demonstrated resilience and continued to strengthen its position as a trusted global technology leader over the past two years,” Deloitte said.

It said factors such as software exports, tech workforce, tier-2 city expansion, government assistance, and improved infrastructure are solidifying India’s evolving value proposition as a reliable and skilled tech talent pool.

Keerthi Prakash , partner, consulting, Deloitte India, said, “We are witnessing an unprecedented digital revolution currently, where India stands at the forefront of global economic growth, taking a leap with dynamic changes that impact businesses, decision-makers, industries, and citizens alike. As more businesses use immersive experiences powered by 5G and spatial computing, coupled with government initiatives supporting digital innovation, India is poised for a transformative era.”

The report also pointed out that the strong focus on engineering research and development (ER&D) has positioned India as a global tech hub for cutting-edge solutions, contributing 48% or US$2.88 billion, to the US$6 billion export revenue addition in FY24 as compared to FY23.