India Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in india, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Information and Communication Technology
Last published date:

Overview

India’s Information and Communication Technology (ICT) sector is a significant contributor to the country’s economy. The ICT sector contributed approximately 18% to India’s Gross Domestic Product (GDP) in the fiscal year 2022-2023, amounting to $402 billion. The government aims to expand the digital economy, currently estimated at $600–$700 billion, to $1 trillion by 2030. The technology industry surpassed $245 billion in revenue in FY2023 and is projected to reach $500 billion by 2030. Growth is driven by ICT and business process management, IT-enabled services, engineering research and development, hardware, software products, and eCommerce. Major ICT hubs include Bengaluru (known as the “Silicon Valley” of India), Chennai, Gurugram, Hyderabad, Mumbai, New Delhi, and Pune. Emerging tech cities like Ahmedabad, Kolkata, and Noida are gaining prominence. 

India has an organized ICT distribution system supported by both global and domestic distributors, with companies selling products directly or through local partners, including system integrators, value-added resellers, and distributors, ensuring effective market penetration and supply chain management.
In the telecommunications sector, India has over 1.2 billion wireless and fixed-line subscribers, with 98% of telephone usage through wireless subscriptions. According to Deloitte, India is expected to reach 1.2 billion smartphones by 2030, up from the 750 million currently. India has also become the second-largest global manufacturer of mobile handsets in the financial year 2023-2024. 

Additionally, India’s broadband subscriber base exceeded 1 billion in late 2025, with total internet subscribers reaching approximately 1,028 million by December 2025, reflecting continued rapid growth in digital connectivity. India’s domestic ICT spending is projected to reach $400 billion by 2030, driven by continued investment in cloud computing, AI, cybersecurity, and other digital technologies across enterprises and the public sector. India remains a key market for U.S. technology exports, including computer and electronic equipment (NAICS code 334). The Indian ICT sector offers significant export opportunities in 5G equipment, cloud computing, artificial intelligence, silicon core chips and semiconductor components manufacturing.  

India’s ICT sector operates within a complex regulatory environment that can affect market access for U.S. companies. Key considerations include taxation policies, the IT Rules of 2020, import restrictions, data localization and cross-border data flow limitations, and other administrative requirements. These regulatory factors can influence investment decisions, technology deployment, and operational planning. For further details, please refer to the section on Digital Economy of the CCG. 

Leading Sub-sectors 

Digital Transformation: According to India based National Association of Software & Service Companies (NASSCOM’s) Annual Chief Experience Officer (CXO) Outlook Survey 2023, Indian enterprises continue to prioritize digital transformation, with a focus on cybersecurity, cloud computing, artificial intelligence, and data analytics. Industry projections indicate that India’s overall technology sector could expand to around $400 billion in annual revenue by 2030, driven by broad adoption of advanced digital technologies and modernization of services across sectors. Financial services, manufacturing, retail, consumer packaged goods, media, and entertainment industries are adopting digital innovations to transform their business models. For further details, refer to the section on Digital Economy of the CCG.

  • eCommerce: India’s eCommerce industry is projected to reach $325 billion by 2030. The eCommerce market includes business-to-consumer, business-to-business, software as a service, online travel, online media, online food delivery, edtech, health-tech, online ride hailing, and others. India has emerged as a preferred destination for eCommerce due to its large consumer base, diverse demographics, low-cost digital infrastructure and services, and supply chain ecosystem. For further details, refer to the eCommerce section of the CCG.
     
  • Cybersecurity: India has reached a significant milestone by securing a Tier-1 position in the latest Global Cybersecurity Index (GCI) 2024, published by the International Telecommunication Unit (ITU) with a score of 98.49 out of 100. India is among the 47 countries recognized for their strong commitment to cybersecurity.  Security and risk management products and services include application security, cloud security, consumer security software, data privacy, data security, identity access management, infrastructure protection, integrated risk management, network security equipment, and security services. Leading industry sectors driving cybersecurity growth are banking, healthcare, insurance, capital markets, and critical information infrastructure such as energy, oil and gas, defense, transportation, and telecommunications.
     
  • Financial Technology (FinTech) and Digital Finance: India has one of the world’s fastest-growing financial technologies markets. Digital payments are the primary driver of growth in this sector, followed by digital lending and other tech-enabled financial services. According to industry forecasts, India’s FinTech market is projected to grow from approximately $44.12 billion in 2025 to about $95.30 billion by 2030, reflecting sustained expansion in digital financial services and payments  Digital payments dominate India’s financial ecosystem: in 2024 and the first half of 2025, digital payments accounted for about 99.8 % of total transaction volume and 97.7 % of total payment value across all payment systems, according to the Reserve Bank of India’s payment system report. The RBI has implemented several supportive measures to nurture the FinTech ecosystem, recognizing its importance to India’s economic growth. 

Opportunities

The following areas present significant opportunities for U.S. exports to India, driven by the country’s substantial investments in digital infrastructure, semiconductors, data centers, and cybersecurity. India’s National Broadband Mission (2019) aims to enhance digital infrastructure with a $100 billion investment, including $35 billion for telecom towers, $30 billion for optical fiber, and $35 billion for spectrum and R&D. As India expands its 5G network and advances 6G R&D, U.S. companies can supply optical fiber cables, 4G/5G radio equipment, and networking equipment and technology solutions. 

Under the National Policy on Electronics (2019), India is investing $30 billion to become a global hub for electronics system design and manufacturing, with demand expected to reach $400 billion by 2025. The Production Linked Incentive (PLI) scheme provides $10 billion each for electronics manufacturing and semiconductors and display ecosystems. India’s semiconductor market is projected to grow from $15 billion (2020) to $109 billion (2030) and the mobile handset market is expected to reach $40 billion by 2025, up from $13 billion in 2020. As a result, Indian and foreign firms are looking to increase manufacturing in India and U.S. exporters are well positioned to supply equipment, components, and advanced technologies to support this expansion. India’s data center market was valued at over $8 billion in 2025, supported by a $4.9 billion investment under the draft Data Center Policy. In-country cloud services and data centers are expanding, creating demand for data center hardware, computing resources, and subsea cable networks and U.S. exporters are well positioned to meet this demand.

The Indian Semiconductor Mission (2021) continues to support the development of domestic chip manufacturing. The Indian semiconductor market is projected to reach around $100–$110 billion by 2030, driven by demand in AI, electric vehicles, data centers, and defense. Cybersecurity is also gaining momentum. The market is expected to grow from $4.5 billion (2021) to $12.9 billion (2030), offering opportunities for U.S. firms in cybersecurity solutions.

Challenges

U.S. companies entering India’s ICT market face several regulatory and operational challenges. High customs duties, ranging from 2.5% to 20%, significantly increase the landed cost of imported ICT products, affecting price competitiveness for U.S. exporters. In addition, India’s mandatory local testing and certification requirements—particularly under the Telecommunication Engineering Centre’s Mandatory Testing and Certification of Telecom Equipment (MTCTE) framework—can result in delays, higher compliance costs, and redundant testing for products already certified in accordance with globally recognized standard. Security-related regulations further complicate market access for telecom equipment. Under the Communications Security Certification Scheme (ComSec) and in accordance with the Indian Telecom Security Assurance Requirements (ITSAR), companies are required to navigate a complex cybersecurity testing and certification process, which continues to evolve. Moreover, under the Trusted Telecom Portal policy, Indian telecom service providers must procure equipment only from government-designated “trusted sources,” limiting entry for some foreign manufacturers.

India also maintains burdensome import licensing requirements on certain ICT products, including computers, tablets, and servers, through its Import Management System. Industry reports that these measures create uncertainty, result in extended processing times, and can function as de facto quantitative restrictions, limiting market access for U.S. exporters. Data governance policies also present hurdles. 

While India’s Digital Personal Data Protection Act (DPDPA), was passed in 2023, detailed implementation guidelines are pending. In the meantime, sector-specific data localization mandates—especially in banking and financial services—continue to pose compliance and operational challenges for U.S. firms dependent on cross-border data flows. Finally, India’s policy landscape is dynamic, with frequent regulatory updates in telecom, cybersecurity, and eCommerce. This makes it essential for businesses to invest in ongoing policy tracking, local partnerships, and robust compliance strategies to succeed in this complex but high-potential market.

For more information about opportunities in this sector, please contact U.S. Commercial Service Industry Specialist Nikika Aggarwal.

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility