The domestic information technology market is expected to expand by 5.9%, crossing $54 billion recorded in FY24, according to the Economic Survey 2024-25. For the year, tech exports in total reached nearly $200 billion, reflecting a growth of 3.3%.
In 2023, the domestic IT growth was at 7.8%, and exceeded export growth for the first time. Chairperson of industry body Nasscom, Rajesh Nambiar, had noted that the growth was supported by government investments and embracing of emerging technologies.
The economic survey noted that the Indian IT/ITeS industry has a leading position globally and has been a significant contributor to the growth of exports. According to Nasscom Strategic Review Report 2024, India's tech industry demonstrated extraordinary resilience in FY24, amid macroeconomic pressures and geopolitical tensions.
The industry has estimated revenues of $254 billion, marking a 3.8% YoY growth in FY24 (excluding e-commerce). The sector maintained its position as a net hirer, adding 60,000 employees to reach a workforce of 5.43 million in FY24, it added.
“Expanding the scope of safe harbour rules and streamlining transfer pricing assessment procedures are expected to make the country's transfer pricing regime more attractive and competitive, boost IT exports, and ease business for Global Capability Centres and the IT services industry,” the survey report read.
Noting the overall business services sector, the survey said that the abolition of the angel tax on investments made by investors in startups is expected to boost the country's global innovation and entrepreneurial competitiveness.
It also underscored other reforms, which include the abolition of the 2% equalisation levy, reduction in tax deducted at source on payment made by e-commerce operators to e-commerce participants, relief from GST on data centre exports, reduction of rate of tax collected at source to be collected by e-commerce operators etc.
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