Source: The Economic Times
Synopsis
India’s tech sector revenue set to grow with increasing focus on GenAI, spatial computing, and virtual reality. The sector expects significant growth in exports and the establishment of over 2500 global capability centers by 2030.
The revenue of India’s technology sector, including the hardware segment, is poised to grow 3.8% on year to $254 billion in the financial year 2024-25, while exports from the sector are likely to touch $200 billion, global consultancy Deloitte said.
Global capability centres (GCC) will take the lead in growth during the current financial year resulting in the presence of more than 2500 GCCs by 2030. The Indian GCC market will be worth more than $100 billion and could employ up to 4.5 million people, Deloitte Tech Trends 2024 report estimates.
“In 2024, the focus will be on identifying investment areas and evaluating outcomes. GenAI (generative artificial intelligence) holds immense promise but also carries risks such as misinformation and synthetic media. Enterprises must manage GenAI-related risks through integrated risk mitigation and governance processes.”
In the hardware segment, spatial computing, augmented and virtual reality as well as metaverse services and devices are projected to achieve revenues of $2.1 billion in the current fiscal, with an overall compounded annual growth rate of more than 40% till 2030.
“With a large pool of skilled engineers and developers, Indian companies are well-positioned to capitalise on emerging technologies such as spatial computing. Second, the increasing penetration of smartphones and internet connectivity, including 5G, across India’s population fuels the demand for immersive and interactive digital experiences.”
Apart from spatial computing, the technology sector will also witness robust growth in the generative AI space fuelled by the increasing abilities of large language models (LLM), large-action models (LAM) and automation models which can now undertake complex tasks and responsibilities to help users in the decision-making process.
“With a key focus on innovation and harnessing the power of data, businesses are using GenAI to unlock new opportunities, drive growth, and stay ahead in an increasingly digital world.”
Overall, the Indian economy is likely to grow by 6.9%–7.2% or more due to the robustness of the country’s industrial sector. The momentum will be strong as the world recovers later in 2024, and India will see much higher economic growth, the consultancy’s report estimated.
