According to a report by Nasscom and Bain & Company, positioning India as a global technology leader through advancements in artificial intelligence (AI), quantum technology, and digital manufacturing could play a crucial role in the country’s journey toward becoming a developed economy by 2047.
Cloud computing and generative AI (Gen AI) have the potential to strengthen India’s IT ecosystem, while high-value service clusters in tier-2 and tier-3 cities could drive inclusivity and global leadership in digital transformation.
The report identifies services as a key sector for India’s 2047 ambitions, alongside electronics, energy, automotives, and chemicals, which are expected to contribute significantly to the country’s gross domestic product (GDP) growth.
Indian IT stands to benefit from AI and automation, improving workforce productivity and revenue generation potential. The report highlights that IT workforce productivity in the US is currently 17 times that of India. Additionally, India’s demand for AI talent is projected to more than double, reaching over 1.25 million by 2027 from 600,000 in 2024.
However, the report warns that growing protectionism fueled by geopolitical instability could impact tech services exports, potentially shifting from global capability centres (GCCs) to integrated service delivery models.
The report added, building capabilities in emerging technologies such as AI, blockchain, and quantum technology could enable India to move beyond traditional outsourcing and transform GCCs into innovation hubs. It further emphasises that tech services should focus on emerging economies and the expanding domestic market for future growth.
Further, India’s electronics market is projected to grow from $100 billion in 2023 to $3–3.5 trillion by 2047, creating 20-22 million jobs. This growth is expected to be driven by global realignment attracting major players to India and improvements in the manufacturing ecosystem.
The electronics sector’s share in India’s GDP could increase from 3 per cent in 2023 to 8-10 per cent by 2047, while the share of exports in production could rise from 24 per cent to 45-50 per cent. India’s contribution to global electronics production could surpass 20 per cent by 2047, up from about 2 per cent today.
To achieve this, the report stresses the need for accelerated domestic production, greater participation in the global value chain, development of new industrial clusters, and investments in skilling and technology transfers. Furthermore, technologies like AI, blockchain, and the Internet of Things (IoT) could revolutionise industries such as banking, healthcare, and retail.
Additionally, sustained annual growth of 8–10 per cent is essential to achieving the 2047 vision, the report states, adding that services are projected to account for 60 per cent of GDP by then. The transition will depend on sectoral transformations, technological advancements, and workforce preparedness.
