India’s software and technology sector has set to overtake the US as a leading tech economy by 2030, according to a report by the Centre for Policy Research (CPR).
The report, which was released on Tuesday, is based on an analysis of the most recent data from the National Centre for Economic Research.
The report, titled “The Future of India’s Software and Technology Sector: 2030-2050,” found that the IT sector had overtaken the US to become the country’s biggest contributor to the economy.
“By 2030, India’s overall IT investment will have risen by 20 per cent to $8.5 trillion,” the report said.
“In the same period, the US is projected to spend $1.2 trillion on IT.”
India’s technology sector is set to become a major contributor to India’s GDP growth rate in 2030, by growing at more than five times the rate of the US,” the CPR report said, citing figures from the International Monetary Fund and McKinsey Global Institute.
The CPR said the IT industry was expected to account for about a quarter of India the countrys gross domestic product by 2030.
According to the report, the Indian IT sector, which is estimated to be worth about $7 trillion, has been attracting investment from private sector investors, such as private equity firms, venture capital firms, private corporations and venture capital funds.
It is expected to be one of the fastest growing sectors of the Indian economy in 2030.
In 2020, India had the second-largest software sector, accounting for 10.6 per cent of the countryís GDP.
The growth in software use has accelerated since the global financial crisis and is forecast to reach 25 per cent by 2030.”
India, which had the third-largest IT sector at 12.7 per cent, is expected by 2020 to have the fourth-largest tech sector, at 25 per, according the CPr report.