AI, GCCs are pushing India’s IT sector into a new phase: Economic Survey
The Survey notes that demand is shifting toward technologies such as generative AI, data engineering and cybersecurity.
- Jan 29, 2026,
- Updated Jan 29, 2026 2:00 PM IST
India’s information technology industry is entering a new phase as artificial intelligence (AI), cloud computing and Global Capability Centres (GCCs) change how global companies use Indian talent, the Economic Survey 2025-26 said.
"In FY25, the IT and IT-enabled services (IT-ITeS) sector reinforced India’s position as a global technology and innovation hub, supported by continued revenue growth, a rising role of Global Capability Centres (GCCs), and deeper engagement in higher-value, complex technology activities," the Survey said.
The Survey notes that demand is shifting toward technologies such as generative AI, data engineering and cybersecurity. This marks a move away from traditional outsourcing toward higher-value digital work, creating fresh opportunities for Indian firms while forcing faster changes in skills and delivery models.
The Survey noted that "Nasscom estimates IT & ITeS industry revenues at $283 billion in FY25, (including hardware), implying a year-on-year growth of 5.1% as against 3.9% in FY24. IT services exports, a key stabiliser of the external sector, are estimated to grow by 3.7% in FY25.
At the same time, GCCs are playing a bigger role in India’s tech economy. These centres are set up by multinational companies to handle engineering, product development, data analytics and research. Earlier focused on back-office work, many GCCs are now working on core digital platforms and AI projects, helping India move up the technology value chain.
Cybersecurity is becoming a key growth area. India’s cyber market was valued at about $6 billion in 2023 and is growing at roughly 30% a year. The country has also earned Tier-1 status on the International Telecommunication Union’s Global Cybersecurity Index.
The Survey says India improved its ranking in UNCTAD’s Frontier Technology Readiness Index, rising from 48th in 2022 to 36th in 2024. Still, weaker internet access and skills in parts of the country could slow the wider use of advanced technologies.
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India’s information technology industry is entering a new phase as artificial intelligence (AI), cloud computing and Global Capability Centres (GCCs) change how global companies use Indian talent, the Economic Survey 2025-26 said.
"In FY25, the IT and IT-enabled services (IT-ITeS) sector reinforced India’s position as a global technology and innovation hub, supported by continued revenue growth, a rising role of Global Capability Centres (GCCs), and deeper engagement in higher-value, complex technology activities," the Survey said.
The Survey notes that demand is shifting toward technologies such as generative AI, data engineering and cybersecurity. This marks a move away from traditional outsourcing toward higher-value digital work, creating fresh opportunities for Indian firms while forcing faster changes in skills and delivery models.
The Survey noted that "Nasscom estimates IT & ITeS industry revenues at $283 billion in FY25, (including hardware), implying a year-on-year growth of 5.1% as against 3.9% in FY24. IT services exports, a key stabiliser of the external sector, are estimated to grow by 3.7% in FY25.
At the same time, GCCs are playing a bigger role in India’s tech economy. These centres are set up by multinational companies to handle engineering, product development, data analytics and research. Earlier focused on back-office work, many GCCs are now working on core digital platforms and AI projects, helping India move up the technology value chain.
Cybersecurity is becoming a key growth area. India’s cyber market was valued at about $6 billion in 2023 and is growing at roughly 30% a year. The country has also earned Tier-1 status on the International Telecommunication Union’s Global Cybersecurity Index.
The Survey says India improved its ranking in UNCTAD’s Frontier Technology Readiness Index, rising from 48th in 2022 to 36th in 2024. Still, weaker internet access and skills in parts of the country could slow the wider use of advanced technologies.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in