India ICT Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

India ICT Market Trends and Insights

Government Digital India and PLI Incentives Boosting Enterprise Tech Spend

The Production Linked Incentive scheme has attracted INR 1.46 lakh crore investments and generated INR 12.50 lakh crore production value, transforming electronics manufacturing capacity from INR 2.4 lakh crore in 2014 to INR 9.8 lakh crore in 2024. The IndiaAI mission allocates USD 1.25 billion to compute, innovation, and startup funding, laying a sovereign AI foundation. Eighty-two percent of CXOs plan digital budgets to rise by more than 5% during 2025, responding to compliance obligations and competitive needs^{[2]NASSCOM, “Unlocking Growth and Value Creation for Technology Services in 2024-25,” nasscom.in}. National Informatics Centre expansion to 1,000 MW IT load and 100 PB storage signals a long-term public infrastructure commitment that cascades into private technology demand. These interventions reinforce the India ICT market by ensuring robust local supply chains, stimulating enterprise modernization, and anchoring hyperscaler data-center projects.

Accelerated Cloud Adoption After COVID-19

Sixty-seven percent of Indian organizations are migrating workloads to cloud platforms, making hybrid the dominant deployment choice. Public-cloud revenue is forecast to reach USD 24.2 billion by 2028, growing at a 23.8% CAGR. Hyperscaler commitments totaling USD 21.7 billion from Microsoft, Amazon, and Google secure localized infrastructure that answers data sovereignty norms and performance targets. Enterprise AI spending is expanding at 2.2× the pace of general digital outlays, tethered to cloud platforms that deliver scalable compute and ready-made ML services. Cloud-native architectures speed product cycles and slash operational bottlenecks, reinforcing the competitive edge of early movers within the India ICT market.

MSME Digital-Commerce Boom

Only 12% of MSMEs have reached digital maturity, yet e-commerce now contributes 27% of their revenue, up from 12% before the pandemic. Digital payment rails processed more than USD 200 billion in 2024, with UPI usage scaling 160× over two decades. Common Services Centres count 584,000 facilities that deliver government and fintech offerings to rural districts, lowering the distribution barrier for ICT vendors. The Digital Village initiative boosts literacy and accelerates demand for affordable, simplified solutions. These forces enlarge the India ICT market by activating a vast base of micro-merchants and small manufacturers once hindered by access and affordability.

Exploding Mobile-Data Consumption and Affordable 4G/5G Tariffs

Reliance Jio’s 5G footprint spans 5,500 cities, while Bharti Airtel covers 5,000+ urban centers; Vodafone Idea completed its national 5G launch in March 2025. Competitive pricing keeps average revenue per user low, but data usage is soaring, driving enterprise mobility, IoT pilots, and video content. Edge-compute and low-latency platforms are spreading to support telemedicine, agritech monitoring, and smart-factory control systems. For the India ICT market, ubiquitous broadband converts latent demand into real consumption, especially in Tier-2 conurbations where new data centers are clustering.

Skill-Gap and High Attrition in Cutting-Edge Domains

Roughly 300,000 technology vacancies remain open, as AI, cloud-architecture, and cybersecurity demands outrun talent supply. Attrition in niche skills exceeds sector norms as specialists pursue global opportunities or startups, diluting institutional knowledge. Rising wage offers inflate project costs and squeeze margins across service providers in the India ICT market. Domain expertise shortages, such as healthcare informatics and industrial IoT, magnify the constraint because universities struggle to adapt curricula in real-time. Unless reskilling programs scale rapidly, delivery timelines and innovation velocity risk deceleration.

Fragmented Last-Mile Fiber in Rural Belts

Only 30.4% of villages enjoy broadband despite BharatNet, whose budget climbed from INR 20,100 crore to INR 139,000 crore, given logistical hurdles^{[3]Economic Times, “BharatNet Project Hits Another Roadblock as RailTel Pulls Out,” economictimes.indiatimes.com} . Contractors exited, delays mounted, and fiber roll-outs remain uneven across states. Without reliable backhaul, cloud and SaaS adoption for rural SMEs stalls, trimming upside for the India ICT market. Service-quality gaps reduce enterprise confidence to launch remote monitoring, tele-health, and agri-data platforms. While 5G fixed wireless may bridge interim deficits, fiber reliability is indispensable for scalable rural digitization.

Segment Analysis

By Type: Telecom Services Lead Despite Cloud Acceleration

Telecommunication Services captured 37.12% India ICT market share in 2024, underpinned by vast 4G and 5G roll-outs and a consistent spectrum policy. Hardware demand rises in sync with PLI incentives that localize device and component manufacturing, reducing reliance on imports and strengthening supply resilience. Software adoption, especially AI-enabled platforms, records double-digit growth as enterprises embed analytics in workflows. IT Services continues the pivot from staff-augmentation to consulting-led, outcome-based engagements, safeguarding margins. Cloud Services, while smaller, shows the steepest climb at a 16.37% CAGR, reflecting data-center buildouts and enterprise shift to OPEX models.

Momentum in Cloud Services translates into a growing slice of the India ICT market size for infrastructure-as-a-service, platform-as-a-service, and software-as-a-service lines. Telecom firms pursue edge-cloud offerings to leverage tower real estate, and hardware vendors push AI-optimized chips to domestic OEMs. Software suppliers align with hyperscalers to offer vertical solutions infused with generative AI, creating cross-selling synergies. Overall, competition intensifies as cloud-native entrants nibble at legacy managed-service accounts.

Note: Segment shares of all individual segments available upon report purchase

By Enterprise Size: SME Growth Velocity Signals Market Democratization

Large Enterprises still contribute 59.32% of India's ICT market revenue due to scale, compliance requirements, and multi-year transformation roadmaps. Their sizable installed bases and hybrid estates sustain recurring demand for managed services. Yet SMEs outpace them with a 15% CAGR through 2030, facilitated by subscription pricing, low-code tools, and government awareness programs. Rural CSC networks and fintech rails simplify procurement and payment, slicing acquisition costs for vendors.

As SME digital maturity rates climb, cybersecurity suites, ERP light solutions, and e-commerce integrations become entry points for broader stack adoption. The India ICT market size for SME-focused SaaS, analytics, and payments shows headroom, encouraged by data-protection legislation that obligates structured information management. Vendors increasingly tailor bundles with vernacular interfaces and pay-as-you-go billing to penetrate micro-enterprise segments.

By Industry Vertical: BFSI Leadership Amid Retail Commerce Surge

BFSI commanded 19.76% of India ICT market size in 2024, reflecting core-banking upgrades, real-time payments, and RegTech automation. Compliance pressures, such as RBI cybersecurity guidelines, prompt continuous security refresh cycles. Nevertheless, Retail and E-commerce is advancing at a 12.36% CAGR, powered by omnichannel strategies, inventory automation, and AI-driven personalization engines. Manufacturing accelerates on the back of Industry 4.0 pilots and PLI-backed automation budgets, while Healthcare embraces telemedicine and electronic medical records.

As digital payments proliferate, BFSI doubles down on fraud analytics and conversational AI for customer support. Retailers partner with cloud platforms to enable dynamic pricing engines and last-mile logistics visibility. These shifts broaden the India ICT market, inviting specialized ISVs to offer vertical SaaS and point solutions that integrate seamlessly into larger ecosystems.

Geography Analysis

Bengaluru, Hyderabad, Pune, Chennai, and the National Capital Region remain the prime clusters, hosting most global capability centers and startup incubators. These hubs benefit from mature talent pipelines, international connectivity, and state incentives. Mumbai’s financial sector anchors BFSI demand, while Chennai’s manufacturing corridor fuels industrial IoT uptake. Collectively, the top five metros account for the lion’s share of India ICT market revenue [NASSCOM].

Tier-2 locales such as Kochi, Indore, and Coimbatore gain traction by offering 15-20% lower real-estate and wage costs, prompting mid-size providers to distribute operations. Gujarat’s GIFT City creates concentrated fintech demand, and Telangana’s AI-focused schemes draw blockchain and analytics firms to Hyderabad. Hyperscalers disperse data-center footprints among Chennai, Pune, and Hyderabad, lowering latency and strengthening disaster-recovery options for nationwide clients.

Rural and semi-urban catchments gradually integrate through BharatNet, despite uneven progress. Uttar Pradesh and West Bengal unveil IT policies to lure investors, and state-backed skilling programs enlarge local talent pools. As connectivity improves, the India ICT market expands outward, enabling distributed teams, remote services, and micro-enterprise digitization that dilute historic metro-centric concentration.