India, the world's fourth-largest economy1, is poised to be the third-largest globally by FY 2030–312, clocking an estimated 6.5% real gross domestic product (GDP) growth in FY 2025-263—a feat powered by its growing tech prowess and a vibrant innovation and R&D ecosystem. The tech sector contributed 7.3% to India's GDP in FY 2024.4 By 2030, India's digital economy is projected to contribute to nearly one-fifth of the country's overall economy.5 With a digitally empowered population of 1.44 billion6, investor-friendly reforms, and world-class infrastructure, the nation is rapidly becoming the centre of global tech innovation.
Below, we outline five key factors driving India's growth as a tech investment hub.
1. Rapid Digital Adoption
India is the third largest digitalised country in the world in terms of economy-wide digitalisation and 12th among the G20 countries in the level of digitalisation of individual users.7 It also ranks 39th in the Global Innovation Index 2024 - a testimony to the growing adoption of technology across industries.8 With an internet user base of over 900 million9, India's digitalisation is leaving an imprint on all major sectors, such as e-commerce, fintech, automation, education, healthcare and more. From making digital payments to shopping online, a digitally savvy consumer base is also disrupting traditional industries and revolutionising new-age businesses.
2. Global Delivery Excellence
India's tech sector boasts a global network of delivery centres across North America, Europe and Asia, enabling round-the-clock operations. Strategic diversification into BFSI, healthcare and retail, coupled with alliances in AI, cloud computing and cybersecurity, has radically strengthened India's global footprint. Many multinationals have chosen India as their second home by establishing advanced global capability centres (GCCs). Currently, there are 1,700 GCCs operational in India, supported by a large talent pool, cost efficiency, strong digital infrastructure, and business reforms.10
3. Young Talent
The National Youth Policy defines the population aged 18-29 as youth. India has over 370 million youth (2021 projections), making up 27.3% of the total population.11 Meanwhile, the Economic Survey 2024 puts 65% of India's population under 35 years old.12 India's demographic dividend - its youth - is an unmatched leverage for investors seeking growth. Initiatives like Atal Innovation Mission (AIM)13, Startup Accelerator of MeitY (SAMRIDH), and Startup India nurture entrepreneurship. India has the largest pool of science, technology, engineering, and mathematics (STEM) graduates, increasing by over 2 million annually.14 The gig economy, set to employ 23 million by 2030, smoothly complements a startup ecosystem.15
4. Supportive Government Initiatives
The government remains committed to supporting the tech industry through path-breaking reforms that spur growth and build a thriving ecosystem. These measures, among others, will propel India towards its $1 trillion digital economy target by 2030.16 Some of the key policy initiatives introduced by the government are:
- IndiaAI Mission: Set up with an outlay of ₹10,300 crore, it aims to boost AI, blockchain, and cybersecurity.17
- PLI Scheme: The Budget 2025-26 increased the outlay for semiconductors to ₹7,000 crore18, while the PLI scheme for electronics manufacturing and IT hardware outlay increased to ₹9,000 crore.19 PLI Scheme 2.0 with ₹17,000 crore ($2.06 billion) for IT hardware manufacturing was also announced to boost domestic manufacturing.20
- Initiatives such as BharatNet to enhance internet connectivity in rural areas and Software Technology Parks of India to build technology startup ecosystem are also strengthening the technology sector in India.
- National Deep Tech Startup Policy: It aims to stimulate innovation, spur economic growth, and promote societal development through the effective utilisation of deep tech research-driven innovations.21
5. Competitive Advantage
India's public cloud services market is expected to reach $25.5 billion by 2028, growing at a CAGR of 24.3% for 2023-28.22 Generative AI and enterprise software firms are driving this growth, supported by global partnerships and a workforce expanding to meet tech demands. India's digital economy is expected to grow twice as fast as the overall economy. It will account for nearly one-fifth of national income by 2029-30.23 A minimal-state, high-impact growth model, underpinned by tech services, will remain India's major growth drivers.
India's blend of economic resilience, demographic vitality, and policy agility creates an unrivaled investment landscape. With the influx of foreign investments and sectors like AI, fintech, and green energy surging, the nation is not just a participant but a leader in the global tech revolution.
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