India’s Tech Sector Poised for Growth with 126,000 New Jobs in FY25
India’s technology sector is on a robust trajectory, poised to add 126,000 new jobs in the fiscal year 2025, bringing the total workforce to an unprecedented 5.8 million. On National Technology Day, Defence Minister Rajnath Singh honored the scientific community, recalling the pivotal 1998 Pokhran nuclear tests that marked a significant milestone in India’s strategic and technological progress.
Despite challenges posed by global economic conditions, including political uncertainties and rising trade barriers, the Indian digital economy is thriving. Key drivers of growth include substantial demand from the U.S., the recovering Banking, Financial Services, and Insurance (BFSI) sector, and expansions across telecommunications, retail, and healthcare sectors in the Asia-Pacific.
According to Nasscom’s Technology Sector Strategic Review 2025, the industry is projected to generate $283 billion in revenue, reflecting a 5.1% year-on-year increase. Notably, export revenue is expected to surpass $200 billion, while domestic revenue is forecasted to grow by 7% to $60 billion.
Artificial intelligence stands out as a pivotal element in this transformation, with 82% of enterprise leaders planning to increase their digital spending by over 5% next year. By 2026, the sector is aiming for revenues of $350 billion, constituting about 10% of India’s GDP, facilitated by advancements in AI, data, and cloud technologies.
The government is intensifying public investment, with Rs 2,000 crore allocated for AI adoption in the Union Budget 2025–26, alongside Rs 500 crore for a Centre of Excellence in AI for Education. Additionally, states like Telangana are significantly contributing, with Hyderabad’s IT exports reaching Rs 2.68 lakh crore ($32.2 billion) in FY24.
Looking ahead, India’s tech sector is set to reach $500 billion by 2030, underpinned by increasing global demand and strategic investments, particularly in its burgeoning software product industry.
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