Advantage India
Growing
Demand
*Strong growth in demand for export from new verticals.
*India’s Information Technology (IT) sector has grown substantially over the past decade, driving exports and employment. As per NASSCOM, industry revenue rose from US$ 167 billion (Rs. 10,42,915 crore) in FY18 to an estimated US$ 315.4 billion (Rs. 27,87,110 crore) in FY26 (till February 2026), with exports at US$ 246.4 billion (Rs. 21,77,829 crore).
*India’s IT ecosystem is set for strong growth, with emerging technologies expected to drive a 20% rise in new jobs in 2025. Indian software product industry is expected to reach US$ 101.64 billion by 2030 as companies seek to expand globally.
Global
Footprint
*In June 2026, TCS launched a dedicated Global Value & Innovation Centres (GVIC) business unit to help multinational enterprises establish and transform AI-native Global Capability Centres (GCCs), strengthening the role of Indian IT firms in supporting global enterprises’ international technology operations.
*Europe accounted for 35% of new delivery centres established by leading Indian IT and engineering service providers in FY26, up from around 11% in FY25. The region also recorded 8.5% YoY revenue growth in the January-March 2026 quarter, compared with 4.5% growth in the Americas, driving Indian IT firms to further expand their presence across Europe.
Competitive
Advantage
*India’s technology industry is on track to double its revenue to US$ 500 billion (Rs. 43,23,500 crore) by 2030.
*India is strengthening its telecom infrastructure through rapid 5G expansion, BharatNet-led rural broadband connectivity and investments in next-generation technologies. As of June 2026, 5G services were available in 99.9% of India’s districts, supported by over 562,000 5G base stations, while the government continues to advance its Bharat 6G Vision and related R&D initiatives.
Policy
Support
*The Union Budget FY26 has sanctioned Rs. 2,000 crore (US$ 232 million) to accelerate AI adoption and infrastructure development.
*The Union Budget 2025-26 allocated Rs. 20,000 crore (US$ 2.31 billion) for R&D, AI, geospatial initiatives and Atal Tinkering Labs to strengthen the innovation ecosystem and support private-sector-led research.
*The 2025–26 Budget allocates Rs. 782 crore (US$ 88.90 million) for cybersecurity measures to protect digital public infrastructure.
*Budget 2026-27 has proposed a tax holiday till 2047 for foreign companies providing cloud services to customers globally using data center services from India.
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