Tech3 | Economic Survey goes all in on GCCs; warns of AI threat to jobs; and more

Ahead of tomorrow's highly anticipated Union Budget, Finance Minister Nirmala Sitharaman presented the annual Economic Survey in Parliament today.

Why it matters: The annual report provides a comprehensive analysis of the state of India’s economy through various indicators.

• It also charts a course for the future, pinpointing potential challenges that could impact the economy's trajectory

Here’s a quick rundown on all the key tech and startup highlights from Economic Survey 2024.?

Key takeaways

Economic Survey goes all in on GCCs

The Economic Survey 2024 paints a bright picture of India's economy, thanks in part to the growing presence of Global Capability Centres (GCCs). The number of GCCs in India has exploded, from 760 in 2012 to over 1,600 by March 2023.?

• GCCs are projected to contribute 3.5% to India's GDP by 2030, translating to a revenue of $121 billion
• GCCs employed over 16.6 lakh people in FY23, with over 42% engaged in engineering, research, and development (ER&D)

The survey quoted a PwC report, saying by 2028, the country is poised to have 2,100 GCCs, with the market size of the centres touching $90 billion.

While IT and BPM sectors have traditionally dominated GCCs, there's a growing focus on ER&D.?

• ER&D GCCs witnessed a 30% growth to $25 billion in FY23

• GCCs within the IT segment grew by 30% to $9.7 billion, while the BPM segment grew about 27% to $10.7 billion in FY23

The Economic Survey, however, found that hiring in the information technology (IT) sector slowed down considerably in the last fiscal.?

• Even if there is no further decline, a significant increase in hiring is unlikely, the report said

This is a short version of the MCTech3 newsletter. Sign up here?to get the full edition in your inbox every evening on weekdays.?