Narayan AmmachchiIndia’s IT services industry is on track to cross the $300-billion revenue mark, even as investor concerns over artificial intelligence-driven disruption continue to weigh on the share prices of several domestic technology providers.
According to the latest Annual Strategic Review by Nasscom, the industry is projected to grow 6.1% year-on-year to about $315 billion in FY26. This would represent a notable expansion from $282.6 billion in FY25, when the sector recorded 5.1% growth.
The report highlights that the industry’s next phase of growth is being driven by AI-led innovation, engineering research and development (ER&D), and the rapid expansion of global capability centers (GCCs) established by multinational corporations in India. These areas are increasingly emerging as key growth engines as enterprises worldwide seek stronger productivity gains and clearer returns on technology investments.
“AI is accelerating productivity and changing the nature of work, but it is also expanding the opportunity frontier,” said Sindhu Gangadharan, Chairperson of Nasscom. She noted that as artificial intelligence becomes embedded across business functions, job roles are likely to evolve toward outcome-driven work, deeper specialisation, and significantly higher levels of AI fluency.
Nasscom estimates that AI-related services could generate between $10 billion and $12 billion in revenue in FY26, as enterprises scale the deployment of generative AI and advanced analytics across industries.
Employment in the sector is also expected to continue expanding. The industry body projects net hiring of about 135,000 professionals in FY26, taking the total workforce in India’s technology sector to nearly 6 million.
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