Boston Consulting Group (BCG), in its new report launched at NASSCOM Technology and Leadership Forum (NTLF) 2026, explores the next phase of India’s technology industry.
India’s GDP stands at around $4.2 T, and it is poised to become the 3rd largest within the next few years, overtaking Germany. Over three decades, the Indian economy has expanded more than fourteen-fold in nominal terms, sustaining real growth of c. 8% annually, among the fastest of the world’s major economies. Technology has been a critical element of this growth story.
Today, India Tech is an approximately $300 B industry, contributing nearly 7% to GDP, generating over $200 B in exports, and employing nearly 5.8 million people directly – this size indicates our strong market position.
But, as Global Tech value pools shift toward IP-led and innovation-driven areas such as AI, Deep Tech, Hyperscale cloud platforms, Software, Semiconductors – India’s strength today is concentrated in IT Consulting and Services and related business process models. Its presence in several of the other large and fast-growing technology segments remains limited. While India commands 15-17% of the global IT Consulting and Services market, which is almost 83-85% of India tech market, the next decade’s disproportionate value creation will come from segments such as Hyperscale cloud platforms, Semiconductor, Deep Tech innovation, AI-native offerings. India’s tech sector, which remains largely concentrated in IT-enabled services. These segments differ fundamentally from traditional services. They are capital intensive, IP-led, R&D-driven, and ecosystem-dependent. They require different capabilities, financing models, policy alignment, and risk appetite. India’s ambition must evolve.
The report highlights key trends shaping the India Tech landscape and draws a comparison between emerging value pools and growth opportunities in India Tech as well as the Global Tech industry. It also suggests a framework to decide on the key considerations for India Tech in the coming years:
- Accelerate and reset the core of India Tech: India must protect and modernize its global IT services leadership. Scaling these bets will require risk capital, R&D intensity, public-private coordination, and long-term policy continuity. AI-driven productivity, automation-led delivery models, and IP-enabled service offerings will reshape margins and growth trajectories. The services model must move up the value chain - from effort-based delivery to outcome-linked, platform-supported propositions.
- Invest in Big Bets: Although there might be limited “Right to Win” for India in certain segments today, selective, high-conviction bets in areas such as semiconductor ecosystems, data center infrastructure, cloud/hyperscale platforms and deep tech can create new engines of value (ecosystems, data center infrastructure, cloud/hyperscale platforms and deep tech).
- Grow the TAM by building adjacencies: Segments that offer near-term growth and large market size, with a slightly higher “Right to Win” for India, present an opportunity to make focused plays: segments like AI-driven analytics, End-user devices, software and India stack enabled platforms.
Unlocking this transition requires coordinated actions across five dimensions:
- Reinvent the tech talent pyramid
- Strengthen commercialization and business resilience
- Scale through structured partnerships
- Fuel frontier innovation with patient capital
- Align policy with technological ambition
These are structural shifts requiring concerted effort across India Tech Inc stakeholders. India’s first technology innings established credibility. The next must establish ownership.