Artificial intelligence (AI) is poised to become a significant growth catalyst for India's IT services and software export industry. A recent report by Equirus, an investment banking and financial services firm, projects that AI-led projects could contribute as much as 20% of Indian tech companies' revenues by 2030. This signifies a major shift as AI transforms how enterprises deliver technology.
The Indian IT sector is anticipated to exceed $400 billion by 2030, demonstrating substantial expansion from $264 billion between fiscal years 2022 and 2025. This growth is expected to continue at an annual rate of 8.7% from fiscal year 2025 to 2030. While AI-driven efficiencies may initially exert downward pressure on pricing, the increasing capabilities of AI are expected to broaden the capacity and willingness of global enterprises to outsource complex workflows.
Several factors contribute to India's potential for AI leadership. The country possesses exceptional tech talent, a growing economy, and a dynamic start-up ecosystem. By maximizing AI's potential, India can enhance productivity, improve living standards, and address critical social challenges. Realizing this potential requires technological advancements, robust frameworks, and equitable access to resources.
The "AI for India 2030" initiative is a structured approach to integrate AI across the nation's socio-economic structure. This initiative, in partnership with the Ministry of Electronics and Information Technology, enables stakeholders across industries and start-ups to collaborate with the government to realize AI's potential. AI's ability to develop context-specific solutions offers India a unique opportunity to address its diverse challenges while contributing to global AI governance and ethics.
Small businesses that embrace cloud-enabled technologies in India are also expected to benefit significantly. These businesses could unlock up to ₹1.6 trillion in annual productivity gains and support 45.9 million jobs. In healthcare, cloud-enabled small businesses can unlock ₹199.5 billion in annual productivity benefits and support 47 million telehealth consultations by 2030. In education, these businesses can unlock ₹291.6 billion in annual productivity benefits and provide e-learning solutions to 99 million students, a 165% increase from the current usage rate.
To accelerate cloud adoption among small businesses, recommendations include identifying how the cloud can streamline strategic business needs, evaluating industry and government support, upskilling employees in cloud technologies, reviewing data and security policies, and creating a comprehensive cloud migration strategy.
Google estimates that AI adoption could unlock at least INR 33.8 lakh crore of economic value in India by 2030. Integrating AI across India's Digital Public Infrastructure (DPI), including healthcare, education, e-governance, and finance, will further unleash AI's potential and accelerate the benefits of DPI.
