Published: 11:54 AM, 17 September 2026
ICT Industry Booms in India, Exceeds All South Asian Countries
India’s information and communications technology (ICT) industry has emerged as one of the strongest technology sectors in South Asia, strengthening the country’s position as a global center for software, information technology-enabled services, digital business and technological innovation. Rapid growth in IT services, telecommunications, artificial intelligence, electronics manufacturing and digital infrastructure has helped India build a technology ecosystem significantly larger than those of its South Asian neighbors.
The scale of India’s ICT industry is reflected in its export performance. According to India’s Ministry of Electronics and Information Technology, the country’s IT-ITeS industry generated an estimated $283 billion in revenue in fiscal year 2024-25, including approximately $224.4 billion in exports. The sector employed about 5.8 million professionals and accounted for roughly 7.3 percent of India’s GDP.
More recent figures underline the broader strength of India’s digitally driven services economy. India’s services exports reached $421.3 billion in fiscal year 2025-26, with telecommunications, computer and information services accounting for $206.6 billion, or about 49 percent of total services exports.
These figures put India well ahead of other South Asian economies in the scale of its ICT sector. The World Bank reported in 2026 that ICT activities accounted for more than 22 percent of total exports and 6.5 percent of GDP in India. By comparison, ICT accounted for 5.3 percent of exports and 2.2 percent of GDP in Sri Lanka and 3 percent of exports and 1.8 percent of GDP in Nepal.
India’s success has been built over several decades. Cities such as Bengaluru, Hyderabad, Chennai, Pune, Mumbai and Gurgaon have developed into major technology centers. Large Indian technology companies serve clients around the world, while multinational corporations have established global capability centers to conduct software development, engineering, analytics, cybersecurity and research.
The country’s large pool of technically trained workers has been another major factor. The Indian IT industry employed approximately 5.8 million people in fiscal 2024-25, according to government figures based on industry estimates. The workforce includes software developers, engineers, business analysts, cybersecurity specialists, data scientists and other technology professionals.
India has also developed a substantial startup ecosystem. Government data places the number of technology startups at more than 32,000, making India one of the world's largest startup markets. Artificial intelligence has become an increasingly important part of this ecosystem, with the number of active generative-AI startups reportedly expanding rapidly during 2024 and 2025.
Government policy has played an important role in this transformation. Initiatives such as the India AI Mission, Software Technology Parks, FutureSkills PRIME, startup-support programs and incentives for electronics manufacturing have sought to strengthen both technological capabilities and employment. The government has also established Software Technology Parks of India centers outside major metropolitan areas, helping extend technology-related economic activity to smaller cities.
India’s ICT expansion is no longer limited to software services. Electronics manufacturing has become another major component of the country's technology strategy. Government figures show that mobile-phone production increased dramatically over the past decade, while mobile-phone exports reached approximately ?2 lakh crore in 2025. Production-linked incentive programs have attracted investment and helped expand the country's electronics manufacturing ecosystem.
Artificial intelligence is expected to further transform the sector. Indian companies and global technology firms operating in the country are investing in cloud computing, data centers, machine learning, cybersecurity and advanced digital services. India’s large domestic market gives technology companies an additional advantage because new digital products can potentially be tested and scaled across a population of more than 1.4 billion people.
However, India's ICT success also presents challenges. The rapid development of artificial intelligence could alter traditional outsourcing and business-process jobs. The World Bank has warned that AI-related technological change could disrupt labor markets across South Asia. For India, continued investment in education and reskilling will therefore be important if workers are to adapt to changing demand.
Infrastructure is another concern. India generates a substantial share of the world's data but has historically had a relatively small share of global data-center capacity. Expanding reliable electricity supplies, high-speed connectivity, cloud infrastructure and data centers will be necessary as demand for AI and other computing-intensive technologies grows.
The growth of India's ICT sector also has implications for neighboring countries, including Bangladesh, Pakistan, Sri Lanka and Nepal. These countries have growing technology sectors and increasingly skilled workforces, but India’s enormous domestic market, established technology companies, large talent pool and extensive international business connections give it a distinctive regional scale.
For South Asia, India's experience demonstrates the economic possibilities created by investment in digital skills, infrastructure and technology-enabled services. At the same time, regional countries can develop their own niches in software development, outsourcing, fintech, cybersecurity, telecommunications and emerging technologies.
India's ICT industry has therefore become much more than an outsourcing sector. It is now a major contributor to exports, employment, entrepreneurship and technological innovation. With services exports continuing to expand and investments flowing into AI, electronics and digital infrastructure, India's technology industry is entering a new phase.
The country's challenge will be to ensure that this growth remains inclusive and sustainable. Expanding advanced technology while improving education, digital access, cybersecurity and worker skills could determine how successfully India converts its current ICT momentum into long-term economic opportunity. For South Asia as a whole, India's rise as a technology powerhouse is reshaping the region's digital and economic landscape.
