Services and Technology
India has moved from the world’s back office to its technology engine. Services exports reached US $421.3 billion in FY2026, nearly half from telecommunications, computer and information services. Over 2,100 global capability centres, a deep AI and engineering talent pool and a payments network that processed 241.6 billion transactions in FY2026 let companies build for global markets from India while serving its rapidly digitising domestic economy.
/ Overview of India's Services and Technology Sector
What began as cost-driven outsourcing is now a capability model. Global capability centres (GCCs), in-house hubs run by multinationals, grew from 1,600 in FY2021 to 2,117 in FY2026, lifting revenue from US 61 billion to US 98 billion. Technology services earn roughly US $265 billion; NITI Aayog sets a US $750-850 billion aspiration for 2035, against US $500-580 billion on current trends. Demand runs both ways, abroad and at home.
$33.01 bn
Fintech Funding
$39.83 bn
Market Size
5.23 mn+
Employment Statistics (India)
+10.7% (in 2024)
Economic Growth Rate
/ Growth Drivers
Rising GCC Maturity: GCCs grew 32% in five years; 46% operate at top maturity tiers versus 42% in FY2021.
AI Talent Depth: India holds nearly 28% of global GCC AI talent, roughly 250,000 professionals, behind only the US.
AI Infrastructure Investment: Google, Amazon and Microsoft have announced about US $70 billion for India’s cloud and AI infrastructure.
Domestic Market: India’s domestic IT and business services market reached US $69 billion in FY2026, growing 7.8% year-on-year.
Payments Rails: UPI links 703 banks and 555 million users, carrying nearly 49% of global real-time payments (2025).
/ Key Investment Opportunities
Global Capability Centres & Engineering
∕ Centre Establishment: 500-plus centres opened in five years, and 64% of site leaders hold global business mandates.
∕ AI Centres of Excellence: Over 1,200 centres embed AI, and 250-plus run dedicated AI and machine-learning centres of excellence.
∕ Smaller-City Hubs:
Vizag, Coimbatore and Nagpur saw 50%-plus IT hiring growth in H1 2025, against 12-15% in metros.
∕ Software Product Engineering:
India’s software-product industry is projected at US $101.64 billion by 2030 as firms strengthen delivery centres.
∕ AI Data Services:
AI data annotation, US $250 million in FY 2025 is projected to reach US $ 7 billion by 2030.
Digital Platforms for India’s Market
∕ Fintech & Payments:
Person-to-merchant transactions are 63% of UPI volume, creating room for merchant-payment, analytics and checkout technology.
∕ Enterprise Software: Enterprise software spending should grow 17.6% to US $24.7 billion in 2026 as firms adopt AI-enabled applications.
∕ Digital Commerce Technology: Online retail grew 25% to US $38 billion in H1 2026, lifting commerce and logistics software demand.
∕ AI-Powered Products:
India’s AI adoption momentum tripled year-on-year, per OpenAI, creating demand for multilingual and automation products.
AI, Cloud & Data-Centre Infrastructure
∕ Data-Centre Capacity:
India generates about 20% of global data but hosts only 1.4 GW of data-centre capacity.
∕ Development Capital:
India’s data-centre pipeline adds 3,860 MW by 2030, needing about US $29.9 billion of development capital.
∕ Cloud Platforms: Platform services lead India’s cloud spending at US $6.4 billion in 2026 as enterprises rebuild for AI.
∕ Data-Centre Locations:
Mumbai has the world’s second-lowest data-centre construction cost; Hyderabad, Chennai and Delhi region are emerging markets.
∕ AI Campus Supply Chain: Gigawatt-scale AI campuses, like Reliance’s US $11.4 billion Andhra Pradesh project, need power, cooling and equipment suppliers.
Partnerships, M&A & Export Markets
∕ IT Services Partnerships: Software services exports reached US $221.4 billion in FY2026, up 8.2%, giving partners proven global delivery scale.
∕ Acquisitions:
Indian technology M&A touched a three-year high of US $29 billion in 2025, offering talent and IP.
∕ Cloud Platforms: Platform services lead India’s cloud spending at US $6.4 billion in 2026 as enterprises rebuild for AI.
∕ Growth Investments: General Atlantic’s US $ 600 million into Phone Pe and Kedaara’s US $350 million into Impetus show growth-capital routes.
∕ Market Diversification:
The US took 54.1% of software exports in FY2026, so Europe and Asia offer diversification routes.
∕ Talent Pool:
Technology and AI employ about 6 million people, and universities add over 500,000 graduates yearly.
/ How We Can Help
Maier Vidorno supports international companies at every stage of their India market entry journey.
NEWS & UPDATES
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