Summary:

India's Software-as-a-Service (SaaS) sector is anticipated to soar to Rs. 8,57,700 crore (US$ 100 billion) by 2035, a significant jump from its current valuation of Rs. 1,71,540 crore (US$ 20 billion), according to a SaaSBoomi report. This growth is driven by AI-powered automation, affordable software development and a surge in adoption by small and medium businesses (SMBs). Enterprise AI and cloud technologies are set to contribute Rs. 3,00,195 crore (US$ 35 billion) to this expansion, as sectors like banking, financial services and insurance (BFSI), healthcare and manufacturing increasingly rely on AI-driven solutions and cloud-based efficiencies.

Digital-native businesses are also expected to elevate their software spending from Rs. 39,454 crore (US$ 4.6 billion) in FY25 to Rs. 2,23,002 crore (US$ 26 billion) by 2035, reflecting their commitment to deeper digital transformation. Additionally, the report highlights a lucrative opportunity for vertical SaaS solutions, projected to generate Rs. 1,11,501 crore (US$ 13 billion) as startups create industry-specific software tailored to meet local regulatory and operational needs. India's cybersecurity market is also poised for rapid growth, expanding from Rs. 13,723 crore (US$ 1.6 billion) to Rs. 85,770 crore (US$ 10 billion) by 2035. This surge will be largely fueled by the implementation of the Digital Personal Data Protection (DPDP) Act 2023 and the Reserve Bank of India's stringent fintech security regulations. With these developments, India's SaaS landscape is set to play a pivotal role in the global software ecosystem.

Source: IBEF

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