Despite a tough year, the Indian technology industry, which is valued at $254 billion, grew by 3.8 per cent (year-on-year) in FY24, according to a report on Friday.
The tech industry employed 5.43 million professionals, with a growth rate of 1.1 per cent in FY24, focusing on Generative AI, cloud and cybersecurity skills.
As far as India is concerned, technology companies will have to grapple with business growth challenges while grabbing the new opportunities of Generative AI and new tech in 2025, Raja Lahiri, partner and technology industry leader at Grant Thornton Bharat said in '2025 Tech Trends Report'.
"The next two years will be the expansion into tier 2 and 3 cities," the report noted, while stressing the importance of it to bridge the talent shortage gap.
The country's focus on GenAI and ER&D services has seen 7.4 per cent growth, with aerospace, defence and automotive being some of the leading digital engineering projects.
India remains a centre for tech innovation as it has 1,700 GCCs, the report said, which was induced by investor interest and a strong ecosystem with a sharp start-up ecosystem.
"India is going to continue its dominance in the global technology services market driven by massive tech, engineering talent, high-quality business and digital transformation impact on global clients," Lahri added.
While there are still challenges, this industry's large talent pool, along with a growing adoption of generative AI, SaaS, and digital transformation projects, position it for a moderate recovery in 2025.
According to the report, Indian companies would need to create and foster a culture of excellence in quality, innovation, and customer experience to lead the world of tech in the New Year.
The Indian tech industry faced slowing revenue growth and rising employee costs in FY24, spurred by high attrition rates during the pandemic.
"Firms need to balance cost containment with strategic investments in innovation to navigate economic uncertainties and maintain competitiveness in the evolving tech landscape," the report mentioned.
India's deeptech ecosystem, which comprises over 3,600 start-ups, shows immense potential in areas like AI, space tech, and health tech.
"Strategic Gen AI deployment, encompassing use-case selection, robust governance, and operational efficiency, positions organizations to achieve long-term value creation, making AI a cornerstone of the digital transformation journey," it added.
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