Economic Survey 2025 bets big on IT and GCC boom, signals regulatory push for growth

The latest Economic Survey, presented in Parliament, anticipates strong growth for the IT/ITES and Global Capability Centre (GCC) sectors, driven by key regulatory changes. The abolition of the angel tax, expansion of safe harbour rules, and streamlining of transfer pricing assessment procedures are expected to give India a competitive edge, boost IT exports, and increase the number of GCCs.

Citing data from the NASSCOM Strategic Review Report 2024, the survey noted that in FY24, the IT/ITES industry generated estimated revenues of $254 billion (excluding e-commerce), marking a 3.8% year-on-year (YoY) growth. Tech exports alone reached nearly $200 billion, reflecting a 3.3% YoY increase. The domestic IT market is projected to surpass $54 billion in revenue in FY24. Additionally, the sector added nearly 60,000 jobs last fiscal year, bringing the total workforce to an estimated 5.43 million.

“Other reforms include the abolition of the 2% equalisation levy, a reduction in tax deduction at source on payments made by e-commerce operators to e-commerce participants, relief from GST on data centre exports, and a reduction in the rate of tax collection at source by e-commerce operators,” the survey stated.

Emphasising the expansion of Global Capability Centres (GCCs) in India, the survey highlights the increasing number of global roles within GCCs, alongside the adoption of Artificial Intelligence (AI) and Machine Learning (ML) and the establishment of AI Centres of Excellence. These developments aim to leverage India’s strong middle-management talent. The number of global roles in GCCs based in India is expected to grow from the current 6,500 to over 30,000 by 2030.

“GCCs are fundamentally reshaping the technology landscape. Leading organisations are centralising their tech ecosystems in India. This is particularly evident in sectors such as aerospace, defence, and semiconductors, where companies are advancing their engineering efforts to focus on next-generation platforms, products, and technologies,” the survey stated. Engineering R&D (ER&D) GCCs have grown 1.3 times faster than overall GCCs.

The survey also highlights that the services sector, including banking, financial services, and insurance (BFSI), healthcare, telecom, retail, and transport and logistics, has been at the forefront of AI adoption.