India 2025: Nation’s technology-led transformation

India 2025: Nation's technology-led transformation

India’s technology sector in 2025 is not just a story of growth, but a testament to the nation’s resilience, policy ambition, and capacity for innovation. As Rajesh Nambiar, President of Nasscom, remarked, “The revenue growth is on the right trajectory, given everything happening around us,” referencing global headwinds, geopolitical tensions, and tariff uncertainties. This review offers a holistic, deeply analytical perspective on India’s science and technology landscape, integrating the latest data, sectoral achievements, policy initiatives, and future targets. The Digital Economy and Information Technology India’s digital economy has emerged as a formidable engine of growth, now contributing an estimated 12% to the country’s GDP, with digital public infrastructure alone adding an additional 1.5%. According to Nasscom’s Technology Sector Strategic Review 2025, the tech industry is projected to generate $282.6 billion in revenue for FY25, marking a 5.1% year-on-year growth and adding $13.8 billion in incremental revenue over the previous year. The industry is on track to cross $300 billion in FY26, with an ambitious target of $500 billion by 2030 equivalent to 10% of GDP. This sector’s dynamism is reflected in its workforce, which is set to reach a record 5.8 million in FY25 after adding 126,000 new jobs this year. “India’s share in global sourcing stood at 58% as of FY25,” noted Nasscom, underscoring the country’s preeminence in global IT services. Engineering R&D and Global Capability Centres (GCCs) are rapidly evolving into high-value product engineering hubs, now contributing equally to industry exports alongside Indian service providers. Digital engineering, especially in BFSI, healthcare, and retail, is driving large deal activity, while e-commerce continues to expand at 35% annually, with gross merchandise value projected to reach nearly $200 billion by 2025. Cloud adoption, enterprise software, and a 21% expansion in data centre capacity have further fueled growth, with 82% of CXOs expecting to increase digital spend by over 5% in 2025. As Sindhu Gangadharan, Chairperson of Nasscom, stated, “Enhanced artificial intelligence implementation, the rise of Agentic AI, and the growing maturity of GCCs as value hubs are reshaping industry dynamics”. Artificial Intelligence, Quantum, and Deep Technology Artificial intelligence is now at the core of India’s digital transformation. More than 75% of Indian enterprises are integrating AI and automation into their operations, fundamentally changing software development, testing, and business processes. The Deloitte Tech Trends 2025 report highlights that AI-powered hardware is transforming industries, from IoT and robotics to advanced computing chips, enabling smarter devices and more efficient systems. “AI is amplifying the capabilities of Indian tech talent, being increasingly applied to code generation, software testing, and automation,” Deloitte observes. Agentic AI, which allows autonomous operation and task execution through AI agents, is being recognized as the next frontier. This is complemented by the rise of generative AI, which is revolutionizing customer experience, process optimization, and content creation across sectors[8]. The National Quantum Mission, with a budget of ₹6,000 crore, is driving research in quantum computing, cryptography, and communications, with IITs and startups developing indigenous quantum processors. Semiconductors, Electronics, and Manufacturing India’s hardware renaissance is being powered by the Production Linked Incentive (PLI) scheme, which has allocated over ₹1.97 lakh crore across 14 sectors. Electronics and IT hardware PLI budgets have surged, supporting $50- 60 billion in component production and targeting $300 billion in electronics output by 2030. New semiconductor fabrication facilities are under construction, and India now produces over 2,000 chip designs annually, with a focus on deepening supply chains and reducing import dependency. The sector’s momentum is reinforced by the structural shift in revenue distribution, with multinational corporations and GCCs contributing equally to exports. The government’s vision is clear: “We are building a resilient, self-reliant electronics and semiconductor ecosystem that will power India’s digital future,” stated a senior official from the Ministry of Electronics and IT. Biotechnology, Healthcare, and Life Sciences India’s biotechnology sector is targeting a $150 billion bioeconomy by 2030, driven by over 6,000 active startups. The BioE3 Policy (Biotechnology for Economy, Environment, Employment) is catalyzing growth in biopharmaceuticals, sustainable agriculture, and bio-based manufacturing. “India is not just a pharmacy to the world, but a hub for biotech innovation,” said Dr. Jitendra Singh, S&T Minister, referencing the sector’s leadership in vaccines, generics, and genomics. Innovation hubs and research parks are driving advances in precision medicine, agribiotech, and affordable healthcare solutions. The sector’s agility was demonstrated during the pandemic and continues in the rapid development of new vaccines, diagnostics, and digital health platforms. Agritech and Food Security Agriculture is being radically transformed by technology. AI-driven analytics, drones, IoT sensors, and geospatial intelligence have become integral to modern Indian farming. The MahaAgri-AI Policy and national missions have funneled billions into climate-resilient, tech-driven agriculture. The Indian Council of Agricultural Research (ICAR) has developed nearly 3,000 new crop varieties since 2015, focusing on stress tolerance and sustainability. Digital platforms such as e-NAM and AGRI-Bazaar are connecting millions of farmers directly to markets, while blockchain-enabled traceability and advanced water management are improving productivity and environmental stewardship. “We are empowering our farmers with the tools of the future,” Dr. Singh emphasized. Defence, Aerospace, and Cybersecurity India’s defence and aerospace sectors are experiencing a strategic leap. The defence budget now exceeds ₹6 lakh crore, with a record 15% increase in R&D spending. Indigenous platforms like the Tejas Mk2 fighter, Arjun tanks, and Dhanush artillery are operational, while AI-powered surveillance, hypersonic vehicles, and directed energy weapons are moving from labs to the field. The SPRINT program and Operation Sindoor are nurturing deep-tech startups, and the private sector is increasingly integral to defence innovation. Defence exports are targeting $5 billion by 2026, and over 100 defence startups are active. “India is asserting itself as a major player in the global defence supply chain,” Defence Minister Rajnath Singh noted on National Technology Day. Cybersecurity has become a parallel priority. As threats become more sophisticated, India is investing in AI-based cyber defence, quantum encryption, and robust regulatory frameworks to protect its critical infrastructure and digital sovereignty. Space and Nuclear Technologies India’s space program is thriving, marked by liberalized policy and robust private sector participation. ISRO’s Chandrayaan-3 lunar landing, Mars Orbiter Mission-2, and the upcoming Gaganyaan human spaceflight are emblematic of India’s scientific prowess. Over $1 billion in private investment and more than 200 space startups are driving innovation in satellite launches, manufacturing, and analytics. The nuclear sector is advancing with a ₹20,000 crore allocation for Small Modular Reactors (SMRs) and regulatory reforms to attract private participation. Nuclear energy is set to supply 10% of India’s electricity by 2040. “Our nuclear program is not just about energy security, but about clean, sustainable growth,” Dr. Singh has asserted. Green Technologies, Electric Mobility, and Smart Cities Sustainability is a defining theme of India’s technological progress. Initiatives such as Battery Aadhaar for digital tagging and recycling, large-scale solar and wind missions, and the rapid adoption of electric vehicles are driving the transition to a low-carbon economy. The government’s Net Zero 2070 commitment is supported by investments in clean energy, green hydrogen, and energy-efficient data centers. Smart cities are becoming a reality, with IoT, AI, and big data enabling intelligent transport, energy management, and urban planning. “Our cities are laboratories of the future, where technology and sustainability go hand in hand,” said a senior official at the Ministry of Housing and Urban Affairs. Policy, Incentives, and Implementation India’s policy ecosystem is marked by coherence and ambition. The Vigyan Dhara Scheme, with a 331% budget increase to ₹1,425 crore, is strengthening R&D labs and human capital. The National Research Foundation, with 70% of funding from industry, is bridging academia and business. SPRINT, ANRF, and OITC are supporting deep-tech startups, IP commercialization, and open access to research infrastructure. Skill development is a priority, with 10,000 PM Research Fellowships in AI, quantum, biotech, and other frontier areas. The Production Linked Incentive (PLI) scheme remains the linchpin of India’s manufacturing and export strategy, driving investment, innovation, and job creation across sectors. The scheme’s impact is visible in the electronics, automotive, specialty steel, and advanced battery industries, among others. Challenges and Future Outlook Despite remarkable progress, India faces challenges in scaling private sector R&D investment, which remains at 0.7% of GDP below global leaders. Regulatory modernization, cybersecurity, and project execution require sustained focus. Nevertheless, the momentum is unmistakable, and the trajectory is upward. As Nasscom’s Rajesh Nambiar put it, “It has been a good outcome broadly given everything happening around us.” Looking ahead to 2030, India’s vision is clear: achieve 70% self-reliance in critical technologies, align energy systems with Net Zero targets, ensure 60% startup participation from non-metro regions, and establish global leadership in biotech, quantum, defence, and space for the Global South. India’s 2025 technology landscape is a story of convergence and ambition. The integration of IT, AI, quantum, semiconductors, biotech, agritech, defence, space, nuclear, and green technologies is creating a resilient, inclusive, and globally competitive nation. With robust policy, record funding, and a thriving innovation ecosystem, India is not just adapting to global trends it is setting them. The coming decade will witness India’s innovation footprint expanding, shaping solutions for its billion-plus citizens and contributing meaningfully to the world. As Dr. Jitendra Singh aptly summarized, “India’s science and technology journey is not just about numbers, but about empowering people, building resilience, and shaping a future that is both inclusive and globally relevant.” [Major General Dr Dilawar Singh, a Ph.D. with multiple postgraduate degrees, is a seasoned expert with over four decades of experience in military policy formulation and counter-terrorism. He has been the National Director General in the Government of India. With extensive multinational exposure at the policy level, he is the Senior Vice President of the Global Economist Forum, AO, ECOSOC, United Nations. He is serving on numerous corporate boards. He has been regularly contributing deep insights into geostrategy, global economics, military affairs, sports, emerging technologies, and corporate governance.]

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