As global economies increasingly pivot toward digital transformation, India has positioned itself not just as a participant but as a dominant force in the international technology landscape. The remarkable growth trajectory of India’s IT exports represents one of the most significant economic success stories of the past decade—yet the geographic distribution of this growth tells an even more compelling story about how technology is reshaping the nation’s economic map.
What makes India’s IT export story particularly fascinating is how it combines extreme concentration with rapid geographic diversification. While established tech hubs continue to dominate in sheer volume, the acceleration of growth in previously underrepresented regions signals a fundamental shift in how digital value is being created across the country. This analysis dives deep into the state-wise patterns driving this transformation, revealing both expected strengths and surprising new contenders in India’s technology landscape.
Key Statistics at a Glance
- Total IT exports (2023-24): ₹9.43 lakh crore ($113.6 billion), up from ₹2.94 lakh crore in 2014-15
- Projected industry revenue by FY 2024-25: $283 billion (total) with $224 billion in exports
- 10-year growth rate: 221% increase in rupee terms (CAGR of 12.39%)
- Leading state: Karnataka with ₹4.09 lakh crore (43.4% of India’s total IT exports)
- Highest growth state: Gujarat at 353.82% (followed by Delhi at 276.43%)
- Concentration ratio: Top 3 states contribute 75.7% of total IT exports
- Government initiatives: 67 STPI centers established nationwide with multiple specialized programs
Three States Driving 75% of India’s Digital Exports
Our analysis of data from Software Technology Parks of India (STPI) registered units reveals a distinct pattern in the distribution of IT export value across the country:
Karnataka
With exports worth ₹4.09 lakh crore in 2023-24, Karnataka alone generates 43.4% of India’s total IT exports—a dominance that has only strengthened over the decade with 272.59% growth since 2014. While Bengaluru’s “Silicon Valley of India” status is well-established, the sheer scale of its contribution remains remarkable:
- Karnataka’s IT exports exceed the combined total of 20 other states and union territories
- The state added approximately ₹30,000 crore in export value annually over the past decade
- Its growth has accelerated particularly after 2020, adding over ₹50,000 crore per year
Maharashtra
Contributing ₹1.84 lakh crore (19.5% of national exports), Maharashtra has leveraged its financial and commercial infrastructure to build a robust IT sector:
- Grew from ₹61,314 crore in 2014-15 to ₹1,83,847 crore by 2023-24
- 199.85% growth rate focused around Mumbai-Pune innovation corridor
- Strong in financial technology services, enterprise solutions, and software product development
Telangana
The youngest of the top three states has established itself as a formidable IT hub with ₹1.21 lakh crore in exports (12.8% of the national total):
- Achieved 209.08% growth since state formation in 2014
- Strategically developed specialty in pharmaceutical tech, defense IT, and animation/gaming
- HITEC City and surrounding tech parks creating concentrated innovation zones
Other Key Contributors
Beyond the “Tech Triangle” that dominates three-quarters of India’s IT exports, several major states make significant contributions to the national total:
Tamil Nadu
With exports of ₹80,677 crore (8.6% of national total), Tamil Nadu has built a diverse technology ecosystem:
- 142.45% growth over the decade, evolving from ₹33,275 crore in 2014-15
- Chennai’s IT corridor and special economic zones driving consistent growth
- Specialized in automotive tech, enterprise applications, and business intelligence
- Emerging strength in hardware-software integration and embedded systems
Haryana
Haryana has leveraged its Gurgaon/Gurugram hub to generate ₹53,172 crore in IT exports (5.6% of national total):
- 197.76% growth from ₹17,857 crore in 2014-15
- Strategic advantage from NCR location attracting multinational corporations
- Strong in business process management, consulting services, and enterprise solutions
- Cybersecurity and fintech emerging as specialized focus areas
Uttar Pradesh
India’s most populous state recorded ₹42,416 crore in IT exports (4.5% of national total):
- 208.70% growth from ₹13,740 crore in 2014-15
- Noida and Greater Noida forming a technology corridor with Delhi
- Emerging specialization in business process outsourcing and IT services
- State policies incentivizing growth beyond NCR region into cities like Lucknow
West Bengal
With exports of ₹13,148 crore (1.4% of national total), West Bengal shows steady progression:
- 87.43% growth from ₹7,015 crore in 2014-15
- Kolkata’s IT hub in Salt Lake and New Town areas driving regional development
- Specialized in analytics, machine learning applications, and process automation
- Growing focus on serving eastern markets and specialized language capabilities
Rising Stars: Growth Leaders Across India
Beyond the established IT powerhouses, several states have achieved remarkable growth rates that highlight India’s expanding technology footprint:
Gujarat: The 353.82% Growth Story
No state has grown faster in percentage terms than Gujarat, which increased IT exports from ₹1,917 crore to ₹8,703 crore—a 353.82% jump that outpaced even Karnataka’s impressive growth:
- GIFT City’s development as a fintech hub driving specialized IT services
- Strategic focus on industrial automation and manufacturing technology
- Government policies specifically tailored to attract mid-sized IT firms
Delhi: Capital Acceleration at 276.43%
The national capital region has leveraged its infrastructure advantages to grow IT exports by 276.43%:
- Startup ecosystem flourishing with over 7,000 tech startups
- NCR’s expansion creating distributed development centers
- Public sector digitization creating specialized expertise
Uttar Pradesh: Emerging Giant with 208.70% Growth
India’s most populous state has transformed its IT landscape:
- Noida emerging as a satellite tech hub for the NCR region
- Exports increased from ₹13,740 crore to ₹42,416 crore
- Growing specialization in BPO and customer experience technologies
The Next Frontier: Tier-2 Cities Leading New Growth
One of the most significant trends in our analysis is the emergence of previously underrepresented regions in India’s IT landscape:
- Kerala: Steady growth to ₹6,303.40 crore with specialized expertise in AI, machine learning, and blockchain technologies based in Kochi and Thiruvananthapuram tech parks
- Meghalaya: 2,839% growth from a small base (₹4.21 crore to ₹123.78 crore) with focus on sustainable technology solutions
- Jammu & Kashmir: 1,611% growth despite challenging circumstances, reaching ₹41.93 crore with specialized IT services
- Odisha: Steady growth to ₹3,302 crore with specialized development centers in Bhubaneswar
This geographic diversification indicates the success of government policies aimed at expanding IT infrastructure beyond traditional hubs, creating new opportunities for talent across India.
Government Catalysts: Policy Initiatives Reshaping the Digital Map
The Indian IT industry has a leading position globally and has been progressively contributing to the growth of exports and creation of employment opportunities. Government has come up with various initiatives to promote IT industry across the country which include:
Infrastructure Development
- Setting up of 67 centres of Software Technology Parks of India (STPI)
- Implementation of 100% Foreign Direct Investment (FDI) policy
- BPO Promotion Schemes for small towns/cities
Policy and Regulatory Framework
- National Policy on Software Products-2019 (NPSP 2019)
- Special economic zones with IT-specific incentives
Skill Development Ecosystem
- Various skill development programs through 55 centres of National Institute of Electronics & Information Technology (NIELIT)
- FutureSkills PRIME for re-skilling/up-skilling of IT professionals
- Industry-academic partnerships in emerging technology fields
Startup Support Systems
- Promotion of Start-up ecosystem through Technology Incubation and Development of Entrepreneurs (TIDE 2.0)
- Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH)
- Domain Specific Centres of Excellence (CoEs)
- Gen-Next Support for Innovative Startups (GENESIS)
Future-Focused Initiatives
- India AI Mission creating specialized capabilities
- Specialized programs for emerging technologies
These initiatives have played a crucial role for growth of IT industry across all states and union territories.
The National Transformation: From $100B to $224B
According to NASSCOM projections, India’s IT export revenue is set to reach $224 billion by 2024-25, up from $100 billion in 2014-15, reflecting both the success of existing hubs and the emergence of new centers:
| Metric | FY 2014-15 | FY 2024-25(E) | Growth |
|---|---|---|---|
| Total Revenue (USD Billion) | 118 | 283 | 140% |
| Export Revenue (USD Billion) | 100 | 224 | 124% |
This translates to a projected compound annual growth rate (CAGR) of approximately 8.4% for total revenue and 8.4% for exports over the period—significantly outpacing global IT industry growth rates.
Beyond the Metro Map: India’s Evolving IT Landscape
Our analysis reveals several key patterns that will shape India’s IT future:
- Regional Specialization: States are increasingly developing unique technology niches rather than competing directly with established hubs
- Karnataka: Software development, R&D centers, and enterprise solutions
- Maharashtra: Fintech, enterprise services, and SaaS platforms
- Gujarat: Industrial automation and manufacturing tech services
- Kerala: AI, machine learning, and blockchain technologies
- Distributed Development: Growth is expanding beyond metro centers to tier-2 and tier-3 cities
- Cities like Coimbatore, Bhubaneswar, Jaipur, and Indore showing accelerated growth
- Work-from-anywhere policies creating new opportunities in smaller cities
- Infrastructure-Led Growth: Direct correlation between specialized infrastructure and export acceleration
- States with dedicated IT parks showing 2.3x higher growth rates
- Special Economic Zones with technology focus creating innovation clusters
- Policy Impact: Targeted government initiatives showing measurable results in specific regions
- BPO Promotion Scheme benefiting over 45 cities outside traditional hubs
- STPI centers driving localized technology ecosystems
- Global Integration: Export growth reflecting deeper integration with global technology value chains
- States developing specialized capabilities aligned with global demand
- Growth in Global Capability Centers across emerging hubs
The Road Ahead: Challenges and Opportunities
As India navigates its next phase of IT growth toward the $283 billion projection, several factors will determine whether the remarkable trajectory continues:
Challenges to Address
- Talent Distribution: Ensuring adequate skilled workforce across emerging centers
- Infrastructure Parity: Building world-class facilities beyond established hubs
- Specialized Education: Developing regional centers of excellence in emerging technologies
- Global Competition: Maintaining competitiveness against other emerging tech economies
Future Growth Drivers
- AI and Machine Learning: Already driving specialization in several states with 32% annual growth
- Sustainability Tech: Emerging focus area with strong growth potential and 28% projected CAGR
- Health Technology: Accelerated by pandemic-driven digitization and growing at 26% annually
- Industrial Automation: Supporting manufacturing growth across states with 22% growth rate
Conclusion: India’s Distributed Digital Future
The state-wise analysis of India’s IT exports reveals not just impressive growth numbers but a fundamental transformation in how and where technology value is created across the country. While Karnataka, Maharashtra, and Telangana continue to dominate, the emergence of new technology centers points to a more distributed, specialized, and resilient IT ecosystem developing throughout India.
With government policies systematically supporting this geographic diversification and NASSCOM projecting industry revenue to reach $283 billion by 2024-25, India’s IT export story is evolving from a tale of a few successful hubs to a nationwide digital transformation that spans from Srinagar to Thiruvananthapuram and from Gandhinagar to Guwahati.
Source: Data analysis based on information from NASSCOM and PIB Delhi.
- Three-Pillar Approach to Building Domain Authority for Early-Stage Startups - April 17, 2025
- 30 Top Cities for AI Startups in 2025 - April 17, 2025
- Customer Acquisition Cost by Industry (2025) - April 17, 2025