.png){kind=logo}
The tech sector is one of the major sectors that has significantly led to the growth of the Indian economy. This sector includes IT services, business process outsourcing (BPO), engineering research and development, software companies, and e-commerce.
The major MNC companies in India including TCS, Infosys, Wipro, and Tech Mahindra contribute significantly to the country’s GDP. The Indian GDP saw a significant rise after initiatives like Digital India and India’s National Strategy for Artificial Intelligence (AI) in 2015 and 2018 respectively.
According to the Analytics Insight Report, the growth of AI in India’s tech sector is estimated to be US$ 3.15 Billion in 2024, which further is expected to hit US$ 14.98 Billion by 2030 at a Compound Annual Growth Rate (CAGR) of 29.67%.
This article will help you know how AI is fueling a technological renaissance in India's booming tech sector.
The tech sector witnessed a slow pace of growth before the emergence of artificial intelligence.
In 2013, Statista reported that the IT-BPM (Information Technology and Business Process Management) sector contributed around 7.5% to India's GDP.
NASSCOM estimated the Indian IT industry’s revenue touched US$227 billion in FY22, a 15.5% YoY growth, after the emergence of AI.
A report by Infomerics Ratings reveals that India's IT export revenue grew by 9% in constant currency terms, reaching US$194 billion in FY23. In FY24, IT services exports rose to US$199 billion, with IT services making up over 53% of total exports, including hardware.
Additionally, IT spending in India is estimated to record double-digit growth of 11.1 % in 2024, totaling US$138.6 billion up from US$124.7 billion last year.
A report published by Microsoft, consultancy firm Bain & Co, and industry body Internet and Mobile Association of India (IAMAI), revealed India contributes 16% of the entire world’s AI talent pool, the third highest in the world.
PwC India in June 2024, announced that it was planning to hire 10,000 employees in the cloud and digital technologies space over the next five years.
India's IT industry is likely to hit the US$ 350 billion mark by 2026 and contribute 10% towards the country's gross domestic product (GDP).
One of the most immediate impacts of artificial intelligence was in coding. It automated routine and repetitive tasks.
Developers often spend valuable time writing boilerplate code, generating documentation, and debugging simple issues.
Artificial Intelligence took over these tasks, enabling developers to focus on more complex and creative aspects of development. By offloading mundane coding tasks to AI, teams can experience increased productivity, faster project completions, and more time for innovation.
This efficiency gain is crucial in a fast-paced industry where speed is often tied to success.
Artificial Intelligence has unlocked new dimensions of creativity and problem-solving for developers. By automating routine tasks, developers can dedicate more time to innovative solutions and creative thinking.
Generative AI is also elevating the quality and consistency of code. AI-powered tools can analyze code for potential errors, suggest improvements, and ensure adherence to coding standards. This results in higher code quality across projects, which helps reduce the number of bugs and errors that occur during development.
The rise of generative AI is not only changing existing jobs but also creating new roles within the IT industry. As AI systems increase, there will be a need for professionals like AI trainers.
Artificial intelligence has significantly enhanced decision-making and marketing tactics in the tech industry by leveraging data-driven insights.
In decision-making, AI algorithms analyze vast datasets quickly and accurately, identifying patterns and trends that might be missed by human analysts. This capability allows businesses to make informed decisions faster, improving operational efficiency and strategic planning.
AI-powered tools automate repetitive tasks such as email segmentation, customer service inquiries, and social media management, reducing time for marketers to focus on strategic initiatives.
AI also enhances ad targeting and bidding strategies by analyzing user behavior and preferences, ensuring that marketing efforts are more precise and effective.
AI tools, such as chatbots and virtual assistants, streamline customer service operations, allowing human employees to focus on more complex and strategic tasks. The automation of tasks not only reduces response times but also improves overall efficiency.
AI also enhances productivity through advanced data analytics. By processing vast amounts of data quickly and accurately, AI systems provide valuable insights that help tech companies make informed decisions.
To boost efficiency, the Indian government is actively backing the adoption of artificial intelligence. To support AI research, development, and corporate accessibility, programmes like the National Strategy for Artificial Intelligence have been launched.
Indian companies are becoming more competitive globally. For example, AI enables companies to cut costs, enhance product and service quality, and accelerate the development of new offerings.
AI has helped India to increase exports and make investments globally. An Indian software firm is leveraging AI to streamline its software development workflow. This approach has helped the company reduce costs and improve the quality of its software products.
India's tech sector has experienced a remarkable transformation with the advent of artificial intelligence. Despite challenges such as ethical concerns and the need for continuous skill development, India's commitment to AI research and development positions it as a global leader in technology.
