- NITI Aayog’s 10-year roadmap urges AI-driven transformation in India’s tech services sector to maintain global competitiveness.
- The roadmap targets scaling India’s tech industry to $750-850 billion by 2035 through AI, automation, and platform-driven models.
- Policy recommendations include boosting AI research, reskilling the workforce, and creating a streamlined mechanism for tech company growth.
Ahead of the India AI Impact Summit 2026, the government think tank NITI Aayog has called for a significant transformation in India’s technology services sector, urging a fundamental shift towards artificial intelligence (AI) to ensure the country maintains its global competitiveness. In its comprehensive 10-year roadmap titled ‘Technology Services Reimagination Ahead’, NITI Aayog warned that the current labour-intensive model of the sector would no longer be sustainable in the face of AI-driven disruption and the broader shifts occurring in the global economy.
The roadmap outlines a vision for the sector’s future, suggesting that India’s technology services industry, which is currently valued at approximately $265 billion and contributes around 7% to the national GDP, must embrace AI, automation, and platform-driven models to unlock a target revenue of $750-850 billion by 2035. The document points to a slow down in industry growth, currently hovering between 4-5% annually, largely due to the impact of AI-driven automation and other macroeconomic changes.
The think tank emphasized that merely expanding the traditional IT services model, which has primarily relied on large workforces, will not suffice. AI and automation are transforming how businesses consume technology services, with more organizations now looking for intellectual property-driven, outcome-based, and platform-centric solutions. This means Indian tech firms can no longer rely solely on a cost advantage and manpower to fuel growth.
NITI Aayog highlighted that AI represents a paradigm shift in value creation, where firms must prioritize building intellectual property, developing AI-powered solutions, and delivering measurable business outcomes instead of just focusing on headcount-based revenues. The report stresses that companies that fail to adapt risk being relegated to low-margin service sectors.
Also Read: MFins Services Accelerates Solar and EV Charging Expansion Across India
According to BVR Subrahmanyam, the CEO of NITI Aayog, “The rise of AI is transforming the technology services industry in fundamental ways. For India, this is not just a challenge, it is a generational opportunity to create new value pools, upgrade skills at scale, and strengthen our global leadership”. He further emphasized that this shift presents India not only with the chance to preserve its position as a global services hub but also to emerge as a leader in developing AI-native systems and high-value digital solutions.
The roadmap also underscores external pressures, such as geopolitical fragmentation, data localization mandates, and shifting client expectations. These dynamics make it clear that India must focus on resilience, diversification, and innovation-led growth. The report suggests that India should leverage its existing strengths and push for faster AI adoption, scaling investments in intellectual property and R&D, as well as broadening workforce reskilling initiatives at a national scale.
In terms of policy reform, the roadmap suggests the creation of a streamlined, national single-window mechanism for technology services companies. It calls for strengthening India’s innovation ecosystem, particularly in AI research and development, and expanding large-scale skilling and reskilling programs to address AI-augmented roles. Additionally, it highlights the need for clarity regarding employee stock ownership plans (ESOPs) and talent mobility to encourage growth among startups and product-led firms.
NITI Aayog’s report stresses that the country’s technological future hinges on its ability to adapt and innovate in the age of AI. By focusing on these strategic areas, India has the opportunity to build a more robust, innovation-driven ecosystem that not only supports the nation’s growth ambitions but also fosters high-quality, AI-enabled employment opportunities.
