Russian IT's Sectors Spectacular Growth.

By Rhod Mackenzie

In Russia, one industry has consistently outperformed all other major sectors of the economy in terms of its growth as part of the country's GDP over the past five years. Rhod Mackenzie looks at the reasons behind this spectacular growth and immense contribution to the growth in GDP .
This is the information technology industry. Moreover, discussions regarding the most effective methods of calculating its contribution to the national economy do not negate the fact that it is the most rapidly expanding sector. What is the true state of the economic contribution of the IT sector in Russia?
According to the Ministry of Digital Development, Communications, and Mass Media, the IT industry has led all major sectors of the Russian economy in terms of growth in its contribution to GDP over the past five years. According to the ministry, the industry's share of GDP is expected to double this year compared to 2019. Its contribution to Russia's GDP in 2025 is estimated at 2.5%. Last year, this figure stood at 2.43%, while sales of proprietary IT solutions increased by more than 45%, exceeding 4.5 trillion rubles.( $53 billion )

The industry has seen a significant increase in employment, with the number of employees doubling over the past five years. By 2025, the industry is expected to exceed one million employees.

However, estimates of the industry's contribution to the country's GDP vary. While the Ministry of Digital Development estimates 2.5%, Deputy Prime Minister and Chief of Staff of the Government Dmitry Grigorenko recently stated that Russian IT companies contribute approximately 6% to the country's GDP.
Why such a discrepancy in the in the estimated contribution of the IT industry to the country's GDP? The Ministry of Digital Development, Communications, and Mass Media has estimated the IT industry's contribution to GDP by dividing the total revenue of companies with a relevant OKVED code by Russia's GDP.
An OKVED code is a code from the Russian National Classifier of Economic Activities (OKVED), a system used in Russia to classify different types of economic activity. These codes are assigned when registering a business to identify its main and additional activities for statistical and administrative purposes. For example, a company operating a restaurant would be assigned an OKVED code like 56.10. 
The result is 4.5 trillion rubles. This is a conservative approach to evaluating the IT industry's contribution. Meanwhile, IT products are also created by companies registered in other industries, including fuel and energy, banking, retail, transportation, mechanical engineering, and so on," explains Leonid Delitsyn, an analyst at FG Finam.

The analyst has confirmed that Deputy Prime Minister Dmitry Grigorenko uses calculations of the added value of IT products created by all companies, including those with other OKVED codes.

The ongoing debate surrounding the accurate definition and size of the IT industry is a complex one, with each approach having its own set of advantages and disadvantages.

Delitsyn's statement on the matter is as follows:

As Deputy Prime Minister Grigorenko himself explains: "Previously, there was no reliable and unified model for assessing the industry that would show the true picture and dynamics. We presented an approach that was informed by departmental data on accredited IT companies. The information has been verified by businesses and specialised institutes. Accordingly, the IT industry's contribution to Russia's GDP, in terms of gross value added, amounted to 6%. This is significantly higher than previously presented estimates because they did not include data on large technology companies with non-core OKVED codes."
While the IT industry does not yet play a dominant role in the economy's structure, it is clearly striving to do so. Manufacturing accounts for the largest share of total added value, accounting for 14.1%. Wholesale and retail trade is the second largest sector, accounting for 13.3% of the total. Real estate transactions rank third, with a 11.7% share. Mining and quarrying are the fourth largest sectors, accounting for 10.2% of the total. Public administration and social security rank among the top five (9.7%), according to Delitsyn. The data presented here is sourced from the Rosstat statistics for the first half of 2025.
However, it should be noted that almost all of these industries contribute to the development of the IT sector, which is growing by double digits year on year. Grigorenko anticipates that IT companies will experience a revenue growth of approximately 20% in 2025 compared to the previous year.

What are the key drivers of growth in the IT industry, which is leading the way among all major sectors of the Russian economy in terms of its contribution to GDP?

"The primary reason is the ongoing global trend of information technology becoming increasingly embedded within the economy, a trend which has persisted over the years. It is evident that artificial intelligence is the primary catalyst for industry growth in the current business environment. Furthermore, the country's import substitution policy plays a significant role, allowing Russian IT companies to grow and increase their contribution to the country's GDP," says Delitsyn.

Government support is, of course, extremely important. Firstly, it should be noted that the reduced insurance premiums apply to IT businesses. These will be extended through 2026. Secondly, software developers are exempt from VAT. This is a very significant support measure. Thirdly, IT companies benefit from a reduced corporate income tax rate.

These tax incentives are a significant driver of growth for the new industry, helping it to expand more rapidly than the traditional economic mainstays.

For every ruble invested by the state in support measures for the IT industry, the state receives two rubles in return.
With ongoing government support, the industry is poised for sustained growth. "The industry will focus on automating business operations, including the use of artificial intelligence. It is evident that the banking sector, telecommunications, retail and manufacturing are all now openly expressing interest in this area. Consequently, the IT sector's contribution to GDP will experience sustained growth, including through the efforts of IT departments in other industries," .– says Grigorenko.