Technology Sector in India: Strategic Review - 2025

The theme of this year’s nasscom Strategic Review report is “Beyond Disruption: Staying Future-Ready Today” which focuses on the Indian tech industry’s strengthening position as a global technology and innovation hub, reflected in the rising number of GCCs in the country, its impact on economy and the talent advantage. Also, India is all set to fulfil the vision of a Viksit Bharat by 2047, highlighted by the improvements witnessed across economic development, employment statistics, global competitiveness, physical and digital infrastructure, sustainability and innovation and the overall tech ecosystem.

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Key Findings

As 2024 showed signs of stability with most regions witnessing improved economic activity better aligned to their potential; the global tech spending registered significant growth of 10.8% primarily driven by strong hardware and software spending, while IT services growth remained flat at 4.7%.

FY25 witnessed the industry strengthening its position as the global technology and innovation hub. This is reflected in the fact that despite uncertainties due to elections in several countries, the industry is expected to witness resilient growth in FY25 with revenue (including hardware) estimated to reach $283 Bn (5.1% y-o-y growth), an addition of nearly $14 Bn over last year. Exports are expected to cross the $200 Bn mark growing 4.6% y-o-y to $224 Bn. Domestic technology sector is trailing towards the $60 Bn mark, growing at 7.0% y-o-y to reach $58.2 Bn.
With improving market conditions, the industry’s net hiring this year increased to 126K employees, taking the total employee base to 5.80 Mn (2.2% y-o-y growth). USA and BFSI resurface as the key growth drivers with APAC, Telecom, Retail and Healthcare emerging as the other key growth markets for the industry.

IT services: Expansion of AI led delivery, cloud-native technologies, and cybersecurity services
BPM: Age of transformation and reimagination of services
Software product & DeepTech: Catalyst of innovation & change
ER&D – Emerges as a hotbed of opportunities
Vibrant GCC landscape emerges as the poster child for the tech industry
Tech industry steers convergence of enterprise AI and GenAI adoption
From education to employment- Prioritizing skill focused talent development and management
India domestic tech market: Regaining vigour amidst promising times
India rising: All roads leading to Viksit Bharat @2047

Nasscom Annual Enterprise CXO Survey 2025 indicates stronger growth momentum for CY25 with higher technology spend, particularly AI-led digital spends. 82% of the CXOs expect to increase digital spend by 5%+ compared to CY24.
For technology providers, FY26 is expected to see greater technology spending with 77% of the providers in the Nasscom Annual Tech Services CXO Survey 2025 expecting a higher business growth compared to last year, driven by growing foundational digital scope, emerging markets, and strategic AI-led demand. However, hiring growth expectations remain modest with 45% of the providers expecting increased hiring compared to FY25.
The report recommends a set of ‘4C’ strategic imperatives for the industry:

Co-create: With customers their personalized growth journeys
Collaborate: With future-ready partners for long-term symbiotic growth
Converge: Services and products onto scalable, customizable platforms

Catalyze: Tech R&D and skilled talent advantage to build next-gen solutions

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