India's Tech Industry Recovery Will Occur Between 2027-30 Due To Poor Education System, Says Report

Business Industry

Posted by AI on 2025-08-26 17:40:23 | Last Updated by AI on 2025-08-26 20:43:51

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India's booming tech industry will likely miss its peak revenue growth decade, according to a report by Nasscom and McKinsey. The report suggests that the lack of focus on the education system caused the country to lag behind other countries in tech innovation and may only recover between 2027-30.

Indian IT companies have struggled to deliver revenue growth in recent years as their business models have come under pressure and the rise of the digital economy has dramatically reshaped the industry, causing a fundamental shift in the landscape and creating a demand gap in the IT sector, particularly in the mid-level.

"India was uniquely positioned to lead this shift, but it would require a fundamental re-imagination and a renewed focus on re-skilling and cross-skilling talent at scale," said Rajesh Nambiar, Chairman of Nasscom.

The IT sector is vital for India's economy, accounting for approximately 7% of the country's GDP. However, the report suggests that the sector's revenue growth will not return to the levels seen before the COVID-19 pandemic and is likely to remain muted for the foreseeable future.

It recommends that the industry focus on accelerating digital adoption, investing in emerging technologies, and leveraging the global network and presence to drive business growth. The report also suggests that a proactive approach to talent development is essential to realize India's potential as a digital talent hub. It is a calling for action for the industry and the government to invest in comprehensive workforce planning, addressing the demand gap, and ensuring that the benefits of the digital revolution are widely shared.

This calls into question whether the Indian government will address these issues and help to accelerate the recovery of its tech industry or whether it will lag behind other countries in the global tech race.

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