India’s biggest technology companies, led by Infosys, are investing in the country to boost growth, but have also set their sights on new markets.
In a report published on Monday, McKinsey India said it expects India’s five largest tech companies to grow by 8 per cent in 2017.
This would be up from 7.4 per cent growth in 2016.
It expects these tech giants to be the largest investors in India by 2020.
“This means that they will be the first to invest and create jobs in India and the next step is to increase their investments and employ more people.
This will be a key driver for India’s economic growth in the future,” McKinsey’s India research and advisory arm said in the report.
The report said that while Indian companies have already invested heavily in the US and Europe, it would be a big boost to India if they also went global.
“In the long term, the US will be India’s largest trading partner and its largest source of foreign direct investment,” McKinley said.
However, it noted that India’s growth would slow in 2017 as it has a high number of underdeveloped and underfunded areas and is still in the process of restructuring its economy.
McKinsey also pointed out that India would be the world’s fastest growing technology hub in 2025.