India’s Information Technology (IT) and IT-enabled Services (ITeS) sector has achieved a landmark milestone by surpassing Rs. 21,56,500 crore (US$ 250 billion) in total revenue, with exports contributing Rs. 17,25,200 crore (US$ 200 billion), according to Mr. Arvind Kumar, Director General of Software Technology Parks of India (STPI). Speaking at the inaugural session of Indiasoft 2025 and India Electronics Expo, Mr. Kumar highlighted how India’s IT industry has grown exponentially since FY93, when revenues stood at Rs. 172.52 crore (US$ 20 million).

Growth of India’s IT-ITeS Sector

The Indian IT-ITeS sector has seen tremendous growth over the past three decades, driven by technological advancements, government initiatives, and a thriving start-up ecosystem. India has become a global IT powerhouse, contributing significantly to software exports and digital transformation.

Key Highlights of the Sector’s Growth

• Revenue Growth: The sector crossed Rs. 21,56,500 crore (US$ 250 billion), reflecting consistent growth and innovation.
• Export Contribution: Exports accounted for Rs. 17,25,200 crore (US$ 200 billion), strengthening India’s position as a leading software exporter globally.
• Start-up Ecosystem: India has cultivated a vast tech ecosystem with 1,58,000 registered start-ups, including 78,000 in the technology domain, highlighting the nation’s entrepreneurial dynamism.

Role of STPI and ECS Export Promotion Council

Mr. Kumar acknowledged the Electronics and Computer Software Export Promotion Council (ESC EPC) for its significant contribution to driving software exports. He reiterated that STPI has been instrumental in nurturing start-ups and fostering innovation across India’s IT landscape.

Digital Transformation and UPI Success

India’s digital transformation has been further exemplified by the success of the Unified Payments Interface (UPI), which facilitates 18 billion monthly transactions, showcasing the scale and adoption of digital payments across the country.

Focus on Emerging Technologies

Mr. Kumar emphasised that India is now focusing on emerging technologies such as:

• Artificial Intelligence (AI): Enhancing India’s capabilities in machine learning, automation, and predictive analytics.
• Quantum Computing: Advancing next-generation computing power to solve complex problems faster.
• Semiconductors: Strengthening India’s position in chip design, manufacturing, and semiconductor development.

Inclusive Growth in Start-up Ecosystem

India’s start-up ecosystem has witnessed inclusive growth, with over 50% of start-ups originating from tier-II and tier-III cities and over half of these led by women entrepreneurs. This underscores the Government’s focus on empowering marginalised communities and promoting gender equality in the tech domain.

Government Support and Policy Initiatives

The Government, through STPI and multiple ministries, is actively supporting start-ups and innovation to strengthen India’s digital economy. Key initiatives include:

1. Innovation and Incubation Support

• STPI’s incubation centres provide financial assistance, mentorship, and networking opportunities to start-ups, enabling them to scale and succeed.
• The Government’s focus on deep-tech innovation ensures cutting-edge solutions emerge from India’s tech hubs.

2. Financial Assistance and Incentives

• Special financial packages and tax incentives are extended to start-ups and IT companies to promote research and development (R&D).
• Policies aimed at boosting digital infrastructure have contributed to enhancing India’s global IT competitiveness.

3. Promoting Women Entrepreneurs and Diversity

• Women-led start-ups receive special grants and incentives, encouraging gender diversity in India’s tech ecosystem.
• The Government’s emphasis on gender equality has led to greater participation of women in technology and entrepreneurship.

Impact of India’s IT-ITeS Growth

The rapid growth of India’s IT-ITeS sector has had a profound impact on employment, digital infrastructure, and economic development.

1. Job Creation and Skill Development

• The IT-ITeS industry employs over 5 million professionals, contributing significantly to job creation and skill enhancement.
• Upskilling initiatives and government-led digital literacy programs have prepared India’s workforce for future technologies.

2. Global Competitiveness and Leadership

• India’s IT sector leadership has enhanced its global competitiveness, attracting foreign investments and partnerships.
• Indian software products and services have gained prominence in international markets, reflecting high quality and innovation.

3. Digital Empowerment and Financial Inclusion

• India’s success in digital payments, e-governance, and financial inclusion has empowered millions of people, bridging the digital divide.
• UPI’s exponential growth has revolutionised the way Indians transact and access financial services.

Future Outlook: Strengthening India’s Tech Ecosystem

As India continues its journey as a global IT powerhouse, the Government’s focus remains on sustaining growth, driving innovation, and promoting inclusivity.

Key Goals for the Next Decade

• AI and Quantum Leadership: Position India as a global leader in AI, quantum computing, and semiconductor technology.
• Deep-Tech and Start-up Support: Foster a robust deep-tech ecosystem, enabling Indian start-ups to build world-class solutions.
• Expanding Digital Infrastructure: Ensure universal digital connectivity and financial inclusion across urban and rural landscapes.

Conclusion: India’s Digital Future

With unprecedented growth in IT-ITeS revenue and exports, India is on a path to digital transformation and global technology leadership. The Government’s continued support for innovation, start-ups, and emerging technologies is expected to strengthen India’s digital ecosystem and empower millions of citizens. India’s success story in the IT-ITeS sector reflects its commitment to fostering technological excellence and inclusive growth.

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