The Growing Tech and Sustainable Economy in India

India’s technology sector is amid a remarkable evolution, marked by substantial growth, global recognition, and significant investments. With a projected revenue of $245 billion in FY 2023 and a notable influx of Foreign Direct Investment (FDI), particularly in computer software and hardware, India has become a key player on the global tech stage. The country’s prowess extends to AI talent, internet subscriptions, and a burgeoning startup ecosystem. This article explores the factors driving India’s tech rise and anticipates future trends. 

Technology Development in India 

India’s technology sector is currently experiencing a remarkable evolution, marked by substantial achievements and global recognition. With an estimated revenue of $245 billion in FY 2023, the industry is demonstrating robust growth, particularly in technology exports projected to increase by 9.4% in reported currency terms. Notably, the computer software and hardware sectors have attracted significant Foreign Direct Investment (FDI), totalling $95.88 billion between April 2000 and June 2023. 

India’s prowess extends beyond financial metrics, securing the first rank in “AI talent concentration” and fifth ranks in both “FTTH/Building Internet subscriptions” and “AI scientific publications.” The country has become a preferred destination for establishing Global Capability Centres (GCCs), boasting a total of 1580+ GCCs with an impressive talent pool exceeding 1.66 million. The growth extends to data centres, with over 45 new centres anticipated by 2025, attracting investments totalling $10 billion since 2020. Furthermore, the widespread adoption of technology is evident in the 162.52 million registered users on the Digi locker in India. 

The transformation of the Indian Technology start-up landscape into the fourth largest globally reflects a significant surge since 2010, transitioning from 3,000 startups in 2014 to a thriving ecosystem. This evolution is underscored by an in-depth analysis, identifying current scale and size, factors influencing growth, and steps required to enhance the startup environment. The GDP growth rate of 6% positions India’s economy for exceptional performance, outpacing major economies and contributing to the predicted boost in consumer spending. Indian startups, once service-oriented, have emerged as leaders in product innovation, elevating India’s global tech stature and drawing parallels with more established economies. 

The anticipated rise in annual household income further contributes to this growth, with projections indicating that by 2030, approximately 50% of households are expected to surpass an annual income of INR 5 lakh, marking significant progress from 33% in 2019. 

Technology Investment Outlook  

As India’s technology sector thrives, the investment outlook for IT spending presents a compelling narrative. According to the latest forecast by Gartner, Inc., India’s IT spending is expected to reach $124.6 billion in 2024, showcasing a substantial increase of 10.7% from 2023, following a brief decline. 

Investments in artificial intelligence (AI) and generative AI (GenAI) are anticipated to be key contributors to this growth, though their full impact on IT spending levels is not expected until 2025. Naveen Mishra, VP and Team Manager at Gartner, notes that Indian organizations are strategically investing in AI and automation to enhance operational efficiency and address the ongoing shortage of IT talent. However, it is anticipated that GenAI will truly come into its own in IT budgeting among Indian organizations by 2025. 

The ongoing acceleration of digital technology adoption, including AI, machine learning, and secure access service edge (SASE), is poised to drive a substantial increase in cloud services, thereby boosting growth in both software and IT services. This trajectory is further influenced by the scarcity of internal skills within Indian businesses, contributing to a heightened focus on IT services spending in 2024. 

Specifically, spending on software and IT services is projected to experience the highest annual growth rates in 2024, with software spending expected to surge by 18.5%, and IT services forecasted to grow by a robust 14.6% (see Table 1). This surge in spending not only reflects renewed confidence in India’s IT capabilities but also underscores the strategic imperative for organizations to invest in technology to stay competitive and resilient in an increasingly digital world. As these trends unfold, the trajectory of India’s IT sector appears on a remarkable upswing, offering both domestic and international investors a compelling landscape for strategic investments in the coming years. The confluence of technological advancements, strategic investments, and a dynamic digital landscape positions India as a key player in the global IT arena, ripe with opportunities for those keen on harnessing the potential of this dynamic sector. 


India’s trajectory toward sustainable green energy showcases a promising outlook for 2023 and beyond, driven by an escalating momentum in various sustainability initiatives. Several factors contribute to the positive landscape, including the declining costs of renewable energy technologies, an increasing demand for sustainable solutions, and supportive government policies. 

Noteworthy investments are being channelled into key areas of green energy, underscoring India’s commitment to a cleaner and more sustainable future. Solar energy stands out as the fastest-growing renewable source, witnessing substantial investments of $174 billion in 2022. Wind energy follows closely, experiencing rapid growth with investments totalling $139 billion in the same year. Hydropower, a mature and reliable source, attracted investments amounting to $46 billion, while geothermal energy, though relatively small, demonstrated growth with investments reaching $8 billion in 2022. 

The investment outlook for green energy in India remains robust, with expectations of continued growth in the years to come. As the global demand for sustainable energy sources rises, the International Energy Agency (IEA) estimates that global investments in renewable energy could reach a staggering $1.7 trillion in 2023. 

Investing in green energy not only aligns with environmental objectives but also brings about tangible benefits. One of the primary advantages lies in the reduction of greenhouse gas emissions, contributing significantly to global efforts to mitigate climate change. Moreover, the clean energy sector emerges as a catalyst for economic growth, fostering the creation of new jobs and unlocking diverse economic opportunities. 

In essence, India’s commitment to sustainable green energy is not just a response to global environmental challenges but a strategic investment in a burgeoning sector that holds the key to a cleaner, greener, and economically vibrant future. As the nation steers towards a sustainable energy landscape, these investments promise not only environmental stewardship but also economic prosperity and a sustainable legacy for generations to come. 

India’s technological future looks promising, with a thriving startup ecosystem, increasing household incomes, and substantial investments in IT spending, especially in artificial intelligence. The nation’s commitment to sustainable green energy further adds to its strategic vision, with significant investments shaping a cleaner and economically vibrant future. India’s trajectory in the global IT arena and the green energy sector positions it as a leader, offering compelling opportunities for investors seeking to tap into the potential of these dynamic industries. The nation is not just adapting to the digital age; it is actively shaping it with innovation, sustainability, and a focus on global 

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