India’s US$254bn tech industry is no stranger to big tech, with countless companies eager to invest to bolster AI progress and digitally transform.
India is expected to continue rapidly digitally transforming.
Globally, the nation is growing its technology at one of the fastest paces in the world. According to a 2024 Nasscom-EY report, the AI market in India is expected to grow at a CAGR of 25-35% by 2027, inflating it to US$22bn.
As the country’s digital economy continues to flourish, global technology giants are using the power of AI to cement their market position. With a technologically-engaged government, India has become an extremely competitive environment for big tech to bolster their progress.
Tech giants harness AI to drive progress
India has been using technology to drive forward its economy. The country was emerging for quite some time as an offshore IT services hub, which inevitably gave rise to India-based companies like Tata Consultancy Services (TCS) and Wipro establishing themselves as software leaders within a developing technology landscape.
Now, Indian tech is moving more towards cutting-edge technologies like AI, machine learning and the Internet of Things (IoT) in order to cater to both domestic and international markets.
TCS Vice President of IoT and Digital Engineering, Sreenivasa Chakravarti, told Reuters in September 2024 that tools like generative AI (Gen A) are helping them to accelerate development in the industry’s fast-growing niche of engineering research and design.
Likewise, Technology Magazine has spoken to executives at both Sonata Software and LTIMindtree who both confirm India’s tech boom has been a game changer.
“The mobility and availability of skilled professionals in India have been instrumental in our ability to scale rapidly and deliver cutting-edge solutions to our clients worldwide,” Rajsekhar Datta Roy, Sonata Software’s Chief Technology Officer tells us.
As a result, global technology giants like Cognizant, ABBYY and Capgemini are setting up significant operations in India – and only continuing to expand. Microsoft in particular is investing via its upskilling programme designed to help close talent gaps across the country.
Amazon is one such company that is making moves in India. In June 2023, the company announced plans to increase investments in India to US$26bn by 2030, which included funds for its cloud business.
The tech giant also expects to help Indian exporters, via the Amazon Global Selling programme, sell roughly US$5bn worth of small-ticket items through its e-commerce platform in 2024 alone in crucial markets such as the United States and United Kingdom.
Overall, the company aims to facilitate US$20bn in cumulative e-commerce exports from India by 2025.
“We are investing significantly in tools and technologies to help sellers optimise their reach, enhance product discovery and increase sales,” Bhupen Wakankar, Director of Global Trade at Amazon, told Reuters.
How India continues to confront tech challenges
However, the rapid pace of AI transformation is not without its challenges, particularly as AI technology becomes more sophisticated. This will mean upskilling initiatives will be essential in order to meet customer demands.
The Indian government has also taken a productive and responsible stance towards AI development, offering incentives for companies to build in India. Likewise, it is cracking down on malicious AI such as deepfakes to ensure no misinformation is shared. If platforms do not comply, they can be taken to court under Indian law.
From enhancing IT solutions to revolutionising customer interactions, AI is becoming deeply and powerfully embedded into India’s digital ecosystem.
