According to the latest data and statistics, the Indian tech market, which is now said to be worth somewhere in the region of a mouth-watering $255 billion, grew by almost 4.00% in the 2024 fiscal/financial year despite facing some difficult economic obstacles.
Additionally, statistics show us that the Indian tech sector is home to a workforce of around 5.43 million professionals, which is just over a 1.00% increase from the previous year.
Let’s take a closer look at why India is officially recognised as the world’s third-largest tech industry (by market cap) behind the United States and China.
Why has India got such a thriving tech industry?
India has become a true global leader in the tech industry for numerous reasons. It shows signs of continued growth each year and is well-known for being a haven for tech startups.
Three of the main sectors where India has the most success are the following:
- eCommerce
- Mobile technology
- IT services
The iGaming industry is also booming. The term’ iGaming’ encompasses all real money online betting businesses, like the hundreds of legally permitted websites with thousands of high-quality slots in IE.
Two of the other key tech industries currently achieving incredible year-on-year revenue growth are the healthcare technology and electronics sectors.
By the end of the first half of 2024, the overall growth of India’s tech industry climbed by an impressive 5.90% (year-on-year), and between 2023 and 2028, expert analysts predict that India’s Compound Annual Growth Rate (CAGR) will also climb by around 6.5%.
What are the biggest tech companies that call India home?
Based on recent statistics, the most notable tech companies in India with the biggest market capitalisation are Tata Consultancy Services, which had a market cap in late 2024 of around ₹1,480,901 crore (US$171 billion), followed by Infosys in second place with a market cap of around ₹774,894 crore (US$90 billion).
In third place with a market cap of ₹509,070 crore (US$59 billion) was HCLTech, followed by Cognizant (US$38 billion), Wipro with US$34 billion, and Tech Mahindra with US$19 billion.
Why has Indian become such a big player in the tech industry?
Let’s now closely examine some of the main contributing factors that have led to Indian becoming one of the world’s biggest players on the tech scene. Examples include the following:
- Government backing and incentives – thanks to government funding and initiatives, such as ‘Startup India’ and Digital India, the sector is able to thrive and foster both entrepreneurship and innovation
- Highly skilled workforce – India has a large population with high literacy rates and is now home to highly talented and intelligent computer programmers and trained engineers. Key areas include AI (artificial intelligence), data science, and software development
- Mature startup ecosystem – more tech startups than ever have chosen India as their home, which attracts venture capital/foreign investments and boosts innovation across various tech sectors
- Cost-effectiveness – India is also a desirable place for companies looking to outsource operations because the cost of hiring a highly skilled and fully capable workforce is much cheaper than elsewhere
- Hospitable tech environment and strong education infrastructure – thanks to leading institutions like the IITs (Indian Institutes of Technology) that are renowned for producing top-notch tech graduates with solid practical and theoretical knowledge, India has a strong education infrastructure and hospitable tech environment
- Proficiency in English – The tech workforce and the biggest companies have excellent communication with foreign clients because of the widespread English language fluency
Three of the biggest tech hubs in India are Gurugram (formerly Gurgaon), Hyderabad, and Bangalore, the latter of which is referred to by many as the Silicon Valley of India.
Final thoughts
Over the coming years, India’s tech industry will continue to expand, with the majority of its revenue being generated from major exports to other countries in the BPM and IT sectors – two primary drivers of the market size.
It’s also expected to continue showing record growth with its ever-increasing population and internet penetration.
