India’s IT industry contributed around 8% to the country’s GDP in 2020 and is expected to contribute 10% to India’s GDP by 2025. Exports from the Indian IT industry are expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded 138,000 new hires. Software exports increased by 7% YoY to reach Rs. 5 lakh crore (US$ 67.40 billion) in FY21 from Rs. 4.66 lakh crore (US$ 62.82 billion) in FY20.
Largescale digitization and the industry's timely transition to remote working environments that helped to keep up the industry’s growth amid the coronavirus pandemic.
The IT & BPM industry’s revenue is estimated at around US$ 194 billion in FY21, an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at US$ 45 billion and export revenue is estimated at US$ 150 billion in FY21. According to Industry estimates, IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022.
Indian software product industry is expected to reach US$ 100 billion by 2025.
The data annotation market in India stood at around US$ 250 million in FY20, of which the US market contributed about 60% to the overall value. The market is expected to reach to about US$ 7 billion by 2030 due to accelerated domestic demand for AI.
Indian IT companies have attracted significant investment from major countries. The computer software and hardware sector in India attracted cumulative foreign direct investment (FDI) inflows worth US$ 62.47 billion between April 2000 and September 2020. The sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal Trade (DPIIT).
In the Union Budget 2021, the government has allocated Rs. 53,108 crore (US$ 7.31 billion) to the IT and telecom sector.Industry Forecast
The Indian IT industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50 55
billion of the total revenue. India is the topmost off-shoring destination for IT companies across the world.