Information and communication technology (ICT)/digital industries (DI) market in India
Industry highlights
10%
ICT contribution to India’s GDP by 2025.
CAD $307 billion
Indian IT industry’s revenue in 2022
80+
Canadian ICT companies have a presence in India.
Active bilateral S&T programs with more than 45 countries.
28 million
New jobs to be created in India’s ICT sector by 2025.
Digital payments to reach CAD $1.35 trillion by 2023.
38%
Revenue from digital segment by 2025.
178 billion
Exports from the Indian IT industry in 2022
46.8 billion real-time payments transactions in 2021
India's Information and Communications Technology (ICT) and Digital Industries (DI) sector has experienced tremendous growth in recent years. This growth is due to various factors such as a young population and increasing internet and smartphone usage.
The ICT sector has been attracting a significant amount of foreign investment, and the government has been supportive of its growth by implementing policies and initiatives to promote the sector.
The DI sector has grown at a Compound Annual Growth Rate (CAGR) of more than 15% from CAD 265 billion to over CAD 304.5 billion in FY22. If the current growth rates continue, the digital industry will be worth approximately CAD 533 billion by 2027.
Key opportunities for Canadian ICT/DI companies in India
- Software development and IT services
- E-commerce
- Cyber Security
- Fintech and Digital Finance
- Industry 4.0
- AI/IoT/ML
- 5G
Notable challenges for Canadian ICT/DI companies in India
- Complex regulatory environment, customs duty, and tax regime
- Intellectual property and data privacy
- Price sensitivity and fierce competition
India business landscape
India has a large and rapidly growing population of internet users, creating strong demand for e-commerce, digital media, and mobile applications. India will have 1 billion smartphone users by 2026, driving the need to adopt fintech, e-health, e-learning, etc.
The government of India has also been promoting the use of technology for various initiatives such as Digital India, Smart Cities, and Make in India, which has led to increased demand for software development and IT services. India aims to grow the ICT sector to CAD 1.35 trillion by 2025, or 20% of GDP.
Major ICT centers in India are Bengaluru, Hyderabad, Chennai, New Delhi, Gurugram, Mumbai, and Pune. India has a well-organized distribution system and several established global ICT distributors. ICT companies can sell their products directly and through local partners, including system integrators and value-added resellers.
Indian businesses are growing increasingly tech savvy and software vendors of the world consider it as one of the most lucrative and high potential markets. As a result, several R&D activities are ongoing. India is expected to become an ideal market for testing new technologies and technology-based solutions.
Summary
The Indian ICT market offers several opportunities for Canadian companies, ranging from e-commerce and digital media to IT services and cybersecurity solutions. With its large and growing market and supportive government initiatives, India is a promising destination for Canadian companies looking to expand their business in the ICT sector.
For more information on ICT/DI in the India market please contact IndiaCommerce@international.gc.ca.
