IT is in the headlines but still ranks third in Indian services sector

The services sector's contribution to India's economy more than doubled over the last decade, with IT services GVA growing nearly fourfold despite current industry headwinds

Information technology (IT) companies are sailing choppy waters but a recent report by Niti Aayog called the sector one of the “structural drivers” of India’s services economy, characterised by strong growth and demand.

 

The share of IT in the services sector’s gross value added (GVA) adjusted for inflation has doubled over the past decade, from 6 per cent in FY12 to 12.2 per cent in FY24. In absolute terms, IT services GVA expanded nearly fourfold from Rs 2.4 trillion in FY12 to Rs 10.8 trillion in FY24.

 

It will be interesting to see if the sector will be able to