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India's Tech Sector to Hit $850B by 2035 with AI Push, Says NITI Aayog

NITI Aayog has released a 10-year roadmap projecting India's technology services sector could grow to $750-850 billion by 2035 from its current $265 billion. The plan highlights artificial intelligence as a fundamental shift, moving value from labor arbitrage to IP-driven and platform-based models. It identifies five priority growth areas including Agentic AI, software products, and digital infrastructure. Senior officials emphasize this as a generational opportunity for India to achieve global leadership in next-generation technology.

Key Points: India's Tech Services to Reach $850B by 2035: NITI Aayog

  • Sector to scale from $265B to $750-850B by 2035
  • AI marks a structural shift to IP-led models
  • Five key growth levers identified
  • Supports Viksit Bharat 2047 vision
2 min read

India's technology services sector can scale to $750-850 billion by 2035: NITI Aayog

NITI Aayog's roadmap projects India's tech sector scaling to $750-850 billion by 2035 through AI, innovation, and new growth levers.

"India stands at a defining moment in its technology journey. - Piyush Goyal"

New Delhi, Feb 12

India's $265 billion technology services sector can scale to $750-850 billion by 2035, while strengthening global competitiveness in the AI era and supporting the Viksit Bharat 2047 vision, according to a 10-year roadmap released by NITI Aayog on Thursday.

The roadmap by NITI Aayog's Frontier Tech Hub spotlights that artificial intelligence marks a structural shift in the industry: value will move from labour-arbitrage services toward IP-led, outcome-oriented, and platform-driven delivery models.

The roadmap identifies five priority growth levers: Agentic AI, Software and Products, Digital Infrastructure, Innovation-led Engineering, and India-for-India solutions.

"India stands at a defining moment in its technology journey. Through this roadmap for the reimagination of our technology services sector, we are building an enabling ecosystem that combines progressive policy, strong industry partnership, and a coordinated inter-ministerial approach to accelerate innovation and growth," said Commerce and Industry Minister Piyush Goyal.

"Prime Minister Narendra Modi's government is committed to working closely with industry, and other stakeholders to ensure that we do not miss out on this opportunity to position India as a trusted global leader in next-generation technology services," he added.

According to S, Krishnan, Secretary, MeitY, India is pursuing a full-stack, impact-driven AI strategy, spanning energy, infrastructure, chips, models and applications with its technology services sector central to scaling AI from labs to industry.

India now has the opportunity to evolve from services leadership to global leadership in building AI-native systems.

B.V.R. Subrahmanyam, CEO, NITI Aayog, said that the rise of AI is transforming the technology services industry in fundamental ways.

"For India, this is not just a challenge, it is a generational opportunity to create new value pools, upgrade skills at scale and strengthen our global leadership. The roadmap launched today outlines a forward-looking strategy to build an innovation-driven, AI-enabled technology services ecosystem that supports India's growth ambitions and creates high-quality employment," he stated.

"India's technology services industry has repeatedly proven its ability to reinvent itself - from Y2K to cloud to digital transformation. The AI era is another such inflection point. What we are witnessing is not the end of the sector, but the birth of a new operating model built around human judgment, intelligent agents, and platforms," said Debjani Ghosh, Distinguished Fellow, NITI Aayog.

- IANS

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Reader Comments

P
Priya S
While the vision is great, I hope the execution is solid. We need massive investment in skilling, especially in Tier 2 & 3 cities. The roadmap mentions upgrading skills at scale - this is the most critical part. Let's see the concrete plans.
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Rohit P
From Y2K to AI! Our IT sector has always adapted. This shift to AI-native systems and Agentic AI is the next big leap. Hope our startups and big IT firms collaborate well to make this $850bn target a reality. Jai Hind!
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Sarah B
As someone working in the tech sector here, the emphasis on innovation-led engineering is spot on. We can't just be service providers anymore. Building our own software products and platforms is key to capturing more value.
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Karthik V
A respectful criticism: These reports often sound fantastic, but the ground reality for many engineers is different. We need policies that ensure this growth translates into better job security and wages for the average techie, not just profits for companies.
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David E
The full-stack AI strategy spanning chips to applications is impressive. If India can truly build this integrated ecosystem, it will be a global game-changer. The world is watching.
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Nisha Z
Viksit

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