India’s IT Sector to Surpass $400 Billion by 2030: Report

New Delhi, Oct 28 (KNN) India’s information technology (IT) services industry is projected to cross USD 400 billion by 2030, fuelled by the rapid adoption of artificial intelligence (AI) and the growing demand for outsourcing, according to a report by Bessemer Venture Partners (BVP).

The report highlights that the sector, which stood at around USD 264 billion in FY25, has grown at a compound annual growth rate (CAGR) of 8.1 % since FY22.

Over the next five years, it is expected to maintain a steady 8.7 % annual growth, enabling it to reach the USD 400 billion milestone by the end of the decade.

Experts say that while the short term may witness pricing pressure as enterprises use AI to increase productivity and negotiate lower outsourcing costs, the long-term outlook remains strong. 

Nithin Kaimal, COO and Partner at BVP, described the current slowdown as “a temporary pause in a longer, decade-scale growth story.”

The report also notes that as AI technologies evolve, companies will increasingly outsource complex and high-value services that integrate automation with human expertise.

While automation might reduce some contract sizes, the overall addressable market is expected to expand as businesses rely on AI-enabled solutions to manage advanced tasks.

Industry analysts believe that India’s IT sector is entering a transformative phase where AI will not only enhance efficiency but also redefine the scope of global outsourcing.

Despite short-term challenges, the country’s strong digital infrastructure, skilled workforce, and innovation ecosystem are set to sustain growth through 2030.

(KNN Bureau)