India leads global tech sector with $ 254 billion revenue in FY24: Deloitte

Deloitte's report highlights India's growing tech dominance in spatial computing and generative AI

A recently released report by Deloitte, 'Technology Trends 2024: India Perspective', found that India will emerge as a key player in domains such as spatial computing, the industrial metaverse, cloud computing, and generative AI (GenAI).

The report stated that India is adopting new technology faster than many other countries. For instance, AI-related initiatives surged nearly three times between 2023 and 2024, with over 650,000 employees undergoing GenAI skills training, according to the report.

The revenue in spatial computing and the industrial metaverse, another key area of growth, is projected to be $2.1 billion in 2024, with an anticipated compound annual growth rate (CAGR) of around 40 per cent till 2030, said the report.

All of these initiatives allow India to continue its lead in the global technology sector, with an estimated industry revenue of $254 billion at a 3.8 per cent Y-o-Y growth for the financial year 2024, according to estimates from Deloitte.

“India Inc. is on the brink of transformative change, where embracing emerging technologies has helped us take a leap, bringing a spotlight on India’s growth story. The Tech Trends 2024 report highlights India’s remarkable resilience, redefining its position as a frontrunner in swiftly embracing emerging technologies,” said Deepa Seshadri, Partner and CIO Program Leader at Deloitte India.

The estimates from the report said that India's GenAI market is projected to achieve a compound annual growth rate of over 24.4 per cent from 2023 to 2030.

“As more businesses use immersive experiences powered by 5G and spatial computing, coupled with government initiatives supporting digital innovation, India is poised for a transformative era. From application development to automation, SaaS, and cloud enterprise spending, technology interventions are revolutionising traditional industries, breaking silos, bringing greater modernism and optimism, and propelling India into a new era of digital excellence,” said Keerthi Prakash, Partner, Consulting, Deloitte India.

The rising prominence of Global Capability Centres (GCC), highlighting India's increasing ability to meet international tech demands, is a key contributor to the country’s growth, said the report.

With over 1,600 GCCs, the Indian GCC market is on track to exceed $100 billion, and is likely to employ more than 4.5 million people across 2,500 GCCs nationwide by 2030, according to insights from the study.

The report also projected cloud computing to reach a $10 billion hyperscale market by the year 2028.

The study said that the momentum in AI supercomputing and quantum computing was fueled by initiatives like the $730 million National Quantum Mission.

In the area of cybersecurity, the study revealed some concerning trends. It reported that cyber threats in India surged by 24 per cent in 2024, primarily driven by synthetic media like deep fakes.

Further, scams such as customer care number, know your consumer, and refund scams increased by 35 per cent, with AI voice scams affecting 83 per cent of victims.

“The impending general election and rising misinformation risks highlight the need for enhanced cybersecurity and public awareness. Collaborative efforts between government, tech companies, and citizens are crucial for defending truth and combating cyber threats effectively,” said the report.

Security remained a pressing concern in the financial sector too, with the sector enduring over 13 lakh cyberattacks in 2023, according to the study.

The report advised adherence to regulatory frameworks like the Digital Personal Data Protection Act, 2023 (DPDPA 2023) and the Reserve Bank of India's (RBI) directives on digital payment security as solutions to the issue.