Artificial intelligence is emerging as the strongest growth engine for India’s IT services and software export sector.
A new report from investment banking and financial services firm Equirus says AI-led projects could make up as much as 20% of tech company revenues by 2030.
The report argues that AI is not a threat to India’s technology industry. Instead, it is boosting productivity, changing delivery models, and speeding up mergers and acquisitions.
Equirus identifies three key M&A clusters for the coming years.
The first is AI Enabled Delivery, where tech services firms are expected to acquire companies that offer proprietary IP, automation tools, and AI-first delivery models.
The second is AI-Enabled Platforms, as software products built with AI at their core are set to attract stronger revenue growth and higher investor interest, leading to more acquisitions.
The third is AI Skill Advancement, with major IT firms looking to buy companies focused on AI training, certification, and workforce upskilling both in India and overseas.
The report highlights rapid expansion in India’s Global Capability Centre (GCC) market. It says the GCC sector has more than doubled in the past five years due to the country’s deep talent pool and strong cost advantages.
Sandeep Gogia, managing director and sector lead for tech and digital at Equirus Capital, said that they forecast GCCs to surpass $100 billion by FY2030 as companies shift high-value work from outsourcing to in-house centres. He added that three key growth drivers underpin this trajectory: government policy support, expansion into Tier-2 and Tier-3 cities, and the vast availability of quality talent in India.
AI adoption is also improving unit economics for several digital platforms. Zomato, Paytm, and Rategain have seen margins rise by 200–400 basis points because of AI-led automation in operations. Better governance practices are contributing to higher valuations for companies such as Zomato and PB Fintech, the report said.