At a glance
NITI Aayog proposes a strategic shift for the Indian technology services sector to reach $850 billion by 2035. This transition moves the industry from labor-heavy delivery toward platform-led and AI-native operating models.
Executive overview
The NITI Aayog Frontier Tech Hub report, Technology Services – Reimagination Ahead, identifies a critical inflection point for the Indian IT industry. To sustain a 7-8 percent GDP share, the sector must pivot from traditional labor arbitrage to high-value, IP-led growth. This strategy emphasizes global leadership in software, infrastructure, and innovation-led engineering.
Core AI concept at work
Agentic AI refers to autonomous systems capable of executing complex workflows, making decisions, and interacting with other software agents to achieve specific goals. Unlike traditional AI that only provides information, agentic systems use reasoning to perform tasks independently within defined parameters. This enables the creation of hybrid human-plus-agent service models that enhance operational efficiency.
Key points
- The strategic roadmap targets a revenue increase from approximately $265 billion to a range of $750–850 billion by 2035 through five frontier pathways.
- Delivery models are shifting from effort-based billable hours toward outcome-oriented engagements powered by scalable intellectual property and platform-led solutions.
- The plan identifies five priority investment pools including $8 trillion in core operational automation and $1.1 trillion in hybrid infrastructure and data center orchestration.
- Sustained global competitiveness requires protecting existing growth engines like cloud and cybersecurity while simultaneously pivoting to new vectors like sovereign AI stacks.
Frequently Asked Questions (FAQs)
What are the five frontier pathways identified for the Indian IT sector?
The pathways include Agentic AI Play, Software and Products, Infrastructure Play, Innovation Play, and India-for-India solutions. These pillars aim to diversify growth and move the industry away from a reliance on traditional labor-intensive service models.
How does the NITI Aayog report define the revenue goals for 2035?
The report targets annual revenue between $750 billion and $850 billion to maintain the sector's significant contribution to India's GDP. Achieving this goal requires expanding India's global market share in technology services beyond 25 percent through AI-driven transformation.
What is the significance of the human plus agent service model?
This model integrates intelligent AI agents into professional workflows to handle repetitive or data-heavy tasks while human professionals focus on judgment-based decision-making. It represents a fundamental shift in the operating structure of IT firms, aimed at increasing throughput and value per employee.
FINAL TAKEAWAY
The transition toward an AI-native technology services sector represents a structural reorganization of India's digital economy. Success depends on shifting from headcount-based revenue to value-based outcomes. This realignment is essential for securing long-term economic resilience and achieving the broader national vision for 2047.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
