Thu Sep 12 06:20:29 UTC 2024: ## India’s Tech Industry Poised for Explosive Growth, Mirroring Early Stages of US and Taiwan

**New Delhi:** India’s tech industry is experiencing a surge in growth, mirroring the early stages of tech development seen in countries like the US and Taiwan, according to a new report by Nomura. The report highlights several key factors driving this growth, including government support, cost-effective labor, and the emergence of innovative players.

The report notes that India is witnessing a similar environment to what propelled the tech booms in other countries. The Indian government is actively supporting the localization of manufacturing and exports through initiatives like the Production Linked Incentive (PLI) scheme and import restrictions. These measures are playing a crucial role in fostering the growth of the tech sector.

India’s cost-competitive labor market, with wages 20-50% lower than in Vietnam and Thailand, further enhances the country’s attractiveness as a tech investment destination. Additionally, India’s neutral stance in the ongoing US-China tech rivalry makes it an appealing partner for both Western and Asian tech giants.

These factors, coupled with favorable conditions for capital flow into the sector, are expected to lead to significant growth in India’s electronics production. Nomura projects an increase from USD 115 billion in FY24 to USD 450 billion by FY30, representing a CAGR of around 25%. This growth will be fueled by the PLI schemes, reduced dependence on Chinese imports, and rising domestic consumption.

The report concludes that the confluence of these favorable conditions positions India for substantial growth in its tech industry, mirroring the success stories of early tech pioneers like the US and Taiwan.

Read More