The recommendations are part of the comprehensive blueprint laid out by the Aayog in its report ‘India’s Technology Services – Reimagination Ahead’, released on Thursday.
“India stands at a critical inflection point in the global technology services industry. While its vast talent base and unparalleled data endowments provide a unique advantage, delaying the transformation for AI could erode decades of progress,” the report said.
“This delay could lead to job losses, a decline in its global technology leadership, and loss of opportunities in data-driven growth— which may be difficult to reverse,” it cautioned.
According to the report, India should redeploy its workforce through reskilling rather than displacing them with the advent of AI as doing so can help protect about 1.5 million at-risk industry jobs.
Further it calls for protecting India’s global technology services leadership position saying it is at a tipping point and inaction could potentially jeopardize decades of competitive edge, allowing other countries to take the lead in next-gen, AI-driven services.
“India should capture the data opportunity ahead of competition through decisive action to maintain its strategic advantage, from having strong endowments, such as the largest data sets in the country,” it added. According to the report, the sector needs to aim to achieve $750–850 billion in annual revenue by 2035 to sustain a 7–8% share of GDP and expand its global market share beyond 25%.
“However, current trajectories indicate a $250–300 billion shortfall, underscoring the need for decisive action,” it said, suggesting India needs to focus on emerging technologies such as generative and agentic AI, cloud infrastructure, and digital engineering.
Realising this ambition requires a dual approach of protecting the core and pivoting to new growth vectors, it said.
“The industry must strengthen its existing growth engines—data and AI, cloud, digital transformation, engineering services, and cybersecurity while advancing into five frontier pathways that includes Agentic AI play, Software play, Infrastructure play, Innovation play and India for India play,” it added.