IT Industry in India

Home/Industry Expertise/IT Industry


Statistics, news & updates: everything you need to know about the IT Industry in India

Technology and Research & Development

Growth Drivers​

  • Production-linked incentives for IT Hardware were approved in 2021 to stimulate local manufacturing.​

  • In the IT and BPM sectors, India permits up to 100% Foreign Direct Investment (FDI) under the automatic method.​

  • Consumer acceptance of technology and telecom, and targeted government measures, are driving increased adoption of information and communication technology.​

  • The Bharat Net Project aims to integrate at least five Wi-Fi access sites in each of the country’s 250,000 villages.​

Sub industries​

  • Information Technology​


  • According to the Department of Science and Technology, at the BRICS S&T Steering Committee’s 12th meeting, all countries agreed to an STI-led BRICS Innovation Cooperation Action Plan (2021-24) suggested by India.​

  • India is the world’s leading supplier of IT products, has the world’s third-largest pharmaceutical industry, and a rapidly expanding contract research sector.​


  • Cyber security threats is one of the major challenge faced by the IT sector, in the last four years there have been more than a 50% increase in data breaches​

  • Other countries’ new data protection and privacy standards are blocking Indian enterprises from serving in those countries. The GDPR (General Data Protection Regulation) of the European Union, for example, went into force in May 2018. Because not all Indian IT firms can comply with GDPR and other data privacy regulations, many have had to stop serving EU clients.​

  • One of the most difficult difficulties facing the IT business is employee retention.​

    How we can help you:
    – Product-Pricing analysis

    – Strategies for – product/service localization

    – Market research to sell effectively


  • India’s IT-BPM industry accounts for 8% of the country’s GDP. With 3.9 million employees, the industry is the largest employer in the private sector.​

  • India has the world’s second-largest number of telephone connections. In the Global Innovation Index 2020, India is ranked 48th out of 50 countries. ​

  • In India, more than 500 million people are projected to use cell phones, with three-quarters of them online. Indians are also among the world’s most prolific app downloaders.​

  • IT hardware output is predicted to reach 3 trillion rupees in four years, with domestic value addition rising from 5-10 per cent to 20-25 per cent in five years.​

  • Cisco India recently announced a series of new investments to improve India’s cyber security infrastructure. It would allow India’s digital transformation to be accelerated by creating a transparent and secure digital infrastructure environment.​

  • The government established the National Research Foundation for R&D as part of the Union Budget 2019-20.​

  • India comes in third place among the world’s most inventive lower-middle-income economies.​

  • With about 24 per cent of overall FDI equity inflows in April 2021, Computer Software & Hardware has emerged as the top sector.​

  • The government allocated US$ 2 billion to the Ministry of Science and Technology in the Budget 2021-22. The Department of Atomic Energy has received US$ 2.50 billion in funding.​

  • In 2020, the Indian data center industry is expected to receive about $396 million in investment. By 2025, per capita, data consumption is expected to reach 25GB per month.​

Technology R&D

Key Investment Opportunities​

  • IT services, BPM, software product companies, and shared service centers are all being established.​

  • Knowledge services, data analytics, legal services, Business Process as a Service (BPaaS), and cloud-based services are fast-growing sectors within the BPM domain.​

  • IT Services and fast-growing industries within it, such as SMAC (Social, Mobile, Analytics, Cloud) products and services, IT consulting, and software testing.​

  • The fastest expanding sectors in engineering and R&D are telecom and semiconductors.

COVID Impact​

How has COVID affected the industry?

  • R&D investment continued to grow in 2020, despite the economic impacts of COVID-19, although at a significantly lower rate than in 2019 and with big differences across industries. ​

  • Both the Information and communications technology (ICT) and the life sciences industries fared well in 2020, less so in other industries such as transport equipment.​

  • IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022.​

  • Covid-19 impacted almost every sector. R&D is no exception. There have also been several compelling lessons learned on how the pandemic had impacted R&D. Some of these learnings would get translated as new norms, practices, and cultures in the future.

Outlook for the Technology industry post-Covid

  • Increase in labour cost: The labour cost for skilled workers is expected to rise by 20-25% while for semi-skilled and unskilled workers the cost is expected to increase by 10-15%.
  • Revised SOP’s that take into account new health and sanitary norms: Standard operating procedures require social distancing, personal protective equipment and hygiene will drive up the project cost in short term.
  • Companies are considering hybrid arrangements: The work-from-home approach seems likely to continue throughout 2021 after India’s experienced a dreadful second wave of the pandemic. People have turned their home spaces into temporary home offices. We can expect a surge in demand for the home renovation, maintenance, and interior designing sector.

Key Players in India


  • Infosys​

  • Wipro​

  • TCS​

  • Tech Mahindra​

  • HCL Technologies​

  • Larsen & Toubro Infotech​



  • Cognizant​

  • IBM​

  • Google​

  • Microsoft​

  • Accenture​

  • Dell​

  • Apple Inc.​

  • SAP​

  • Oracle Corporation​

  • Capgemini​


Map Clusters

IT Industry
How we can help you

Contact Us For More Case Studies

    Case studies of Specific IndustrySpecific query about industry or M+V services

    I have read the privacy policy and my data can be used for registration and communication.

    Yes, I agree

    Clients Speak

    LI Ping HR Director /BHS Corrugated Machinery(Shanghai) Co.Ltd

    Strong support in recruitment
    M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

    Falk Tzchichholz Sales Manager Export /Kjellberg Vertrieb GmbH

    Incubation solution
    With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

    Andreas Dauerbock Quality Assurance /Voestalpine Grobblech GmbH

    BIS registration project
    The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India - with the expert's advice you will need.

    Rajesh Nath Managing Director /VDMA India Services Pvt Ltd German Engineering Association

    Competent Partner
    India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows - Maier+Vidorno is a competent partner to efficiently set up and run business.

    Bjoern Becker Export Sales /Jumo GmbH & Co KG

    Market Presence and Profitability
    The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India - and provides hands-on solutions.

    Rene Pluss CFO, Member of the Board /Regent Beleuchtungskorper AG

    Business Diagnostic and Implement Improvement
    Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.