Technology: India’s IT industry to grow to $350 bn by 2030, says Infosys chief
Virendra Pandit
New Delhi: Despite global macroeconomic challenges, India’s high-growth information technology (IT) industry will grow from USD 200 billion now to USD 350 billion by 2030, Kris Gopalakrishnan, co-founder of Infosys, said on Wednesday.
But NASSCOM expects the Indian IT industry will be worth USD 350 billion by 2026 itself!
The National Association of Software and Service Companies (NASSCOM) is an Indian non-governmental trade association and advocacy group that primarily serves the Indian technology industry. Founded in 1988, it operates as a nonprofit organization and serves as a key entity within the Indian technology sector.
“Last year, the (IT) industry grew by around 9 percent. It is a USD 200 billion industry; it is expected to grow to $350 billion by 2030. This is a high-growth industry and this has continuously grown every year over the last several years,” he said at the 26th Bengaluru Tech Summit.
“Yes, the global economy is (witnessing) a slowdown but these are business cycles. In the medium to the long term, I am very confident that we would reach the USD 350 billion number.”
His views are seen as significant as they came when the IT industry’s revenue growth might slow down by 3-5 percent in 2023-24 because of persistent macroeconomic uncertainties, and weaker demand in the key markets of the US and Europe, according to the rating agency ICRA.
New IT service-providing markets, like the Philippines, are also emerging as a challenge to the Indian IT industry.
Innovative technologies such as ChatGPT and generative artificial intelligence (AI) are also reshaping the IT industry.
“In November 2022, ChatGPT was introduced and it became the fastest-growing application technology in the world to date,” said Gopalakrishnan, referring to the AI chatbot that responds to a range of written queries and has taken the world by storm.
Multiple interventions are required when new technologies that have widespread applicability are introduced. Every sector, industry, and application changes. This includes the changes in interacting with technology, information, and intelligent systems.
“What is unique about this round is the ability to interact with AI systems using a chat interface.”
Gopalakrishnan, who is also Chairman of the Vision Group for IT in Karnataka, emphasized the need for regular interaction between the government and industries about opportunities and to strategize for future innovations.
About Karnataka, India’s Silicon Valley, he said the southern state accounts for nearly 40 percent of the country’s IT services industry and it must “discuss, debate and strategize” to continue its leadership.
