Tech Sector To Witness Exponential Growth In 2024

India's technology sector is on the cusp of unprecedented growth, set to surpass expectations amidst global economic uncertainties. Projections suggest that the industry's revenue, encompassing hardware, is poised to exceed a staggering $254 billion in the fiscal year 2024, marking a notable 3.8 percent year-on-year increase.

This growth trajectory signifies an addition of over US$9 billion compared to the preceding year, reaffirming India's position as a frontrunner in the global tech landscape, as per the latest Deloitte Tech Trends 2024 report.

The report highlights the significant contribution of India's GCCs to the nation's capacity to serve international technological needs effectively. GCCs, which are offshore units of multinational corporations established in India, are playing a crucial role in driving innovation, delivering services, and supporting global operations.

The Engineering R&D (ER&D) activities have emerged as a cornerstone of India's technological capabilities, contributing substantially to export revenue generation. The report indicates that ER&D activities accounted for 48 percent of the overall export revenue addition in FY 2024, amounting to $2.88 billion. This underscores the importance of India's engineering talent and expertise in driving innovation and value creation for global markets.

The report highlights a significant increase in export revenue attributed to ER&D activities in FY 2024, totalling $6 billion. This reflects the growing demand for India's engineering and R&D services on the global stage, driven by factors such as cost-effectiveness, technical expertise, and quality delivery.

The report underscores the importance of identifying investment areas and evaluating outcomes in 2024, with a particular focus on managing risks associated with emerging technologies like GenAI.

India's tech ecosystem is witnessing remarkable progress, driven by increased software exports, workforce growth, government support, and infrastructure development. These factors solidify India's position as a reliable tech talent hub, poised for exponential growth in the coming years.

Going forward, the report underscores India's increasing prominence as a hub for technology-driven services, with GCCs and ER&D activities playing a pivotal role in driving growth, innovation, and export revenue generation.