India's Tech Industry Set to Expand

India's technology sector is on track to grow to $350 billion by 2030, up from $254 billion in the 2023-24 financial year, according to Nasscom's president Rajesh Nambiar. The sector's expansion reflects a Compound Annual Growth Rate (CAGR) of 6.4%.

Nambiar emphasized the importance of transitioning from AI Proof of Concepts (PoCs) to achieving measurable returns on investments. He believes the emergence of Generative AI (GenAI) has transformed the global landscape, presenting a pivotal moment for the sector.

The original forecast by Nasscom predicted the tech sector's revenues of $350 billion for FY26, driven by demand for advanced technologies such as cloud computing and analytics. However, due to a significant slowdown in the last fiscal year, the timeline was extended by five years to achieve the targeted figures.

Despite the challenges, the Indian IT services sector continues to show resilience, with IT exports growing by 3.3% in constant currency to reach $199 billion in FY24. This growth, though modest, marks a substantial decline from the previous year's 11.4% growth rate, indicating one of the sector's lowest growth rates.