India's software exports surge to 5.2% of GDP on AI-driven services shift
Source: Bloomberg (paywall)
India's IT services sector has captured an additional 1.9 percentage points of national GDP—roughly $25 billion in incremental economic value—by moving up the value chain toward AI and higher-margin work rather than competing on volume in legacy outsourcing. Generative AI is pricing out lower-skilled offshore labor while creating demand for AI integration, model training, and specialized consulting that India's talent pool is positioned to capture. This signals a shift in global tech labor markets, where geographic arbitrage on commodity coding yields to geography-agnostic demand for AI expertise.