New Delhi: India’s technology industry is projected to reach $315 (₹26.1 lakh crore) billion in revenue in FY26, driven by steady enterprise spending and accelerating adoption of artificial intelligence (AI), according to the latest annual strategic review by Nasscom.
The forecast implies a 6.1% growth rate for FY26, marginally higher than the estimated 5.9% expansion recorded in FY25. While the pace remains moderate compared to the sector’s high-growth years, industry leaders say the outlook reflects resilience amid global macroeconomic uncertainties.
A key driver of the projected expansion is the rapid monetisation of AI-led services. Nasscom estimates that AI-related revenues in India’s IT sector have already reached between $10 billion (₹83,000 crore) and $12 billion (₹99,600 crore), marking the emergence of AI as a meaningful, though still nascent, revenue stream.
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AI Moves From Pilot to Scale
Industry analysts note that AI revenues currently represent a relatively small share of the overall $300-plus billion industry. However, the growth trajectory is steep as enterprises shift from pilot projects and proof-of-concept initiatives to large-scale deployments.
India’s top IT firms have begun disclosing AI-specific revenue figures, underlining the segment’s growing significance.
Tata Consultancy Services (TCS), the country’s largest IT services provider, has reported AI revenue at an annualised run rate of about $1.8 billion. The company has indicated strong sequential growth in AI-led engagements across geographies.
HCLTech disclosed AI revenue of around $146 million, accounting for nearly 4% of its topline. The company has highlighted nearly 20% sequential growth in its advanced AI portfolio, suggesting rising enterprise demand.
Similarly, Infosys said AI now contributes 5.5% to its overall revenue, with the segment generating approximately $275 million as monetisation gathers pace.
Global peer Accenture was among the first to publicly disclose AI-related revenue, though it has since stopped reporting the metric separately.
Industry experts say AI-led transformation deals are increasingly embedded into broader digital, cloud, and automation contracts rather than being treated as standalone offerings.
Hiring Growth Plateaus
While revenues are set to rise, employment growth appears to be stabilising.
According to Nasscom, India’s IT and technology sector added about 1.35 lakh net employees in FY26, only marginally higher than the 1.33 lakh additions recorded in FY25. On a year-on-year basis, the net incremental addition was roughly 2,000 jobs, indicating that hiring growth has largely plateaued.
The sector’s total workforce now stands at approximately 59.5 lakh (5.95 million), up from 58.2 lakh in the previous fiscal — a 2.3% increase in headcount.
The moderation in hiring comes as AI and automation begin reshaping traditional employment models. Industry observers note that the historical correlation between revenue growth and workforce expansion is weakening as productivity gains from AI tools allow companies to deliver higher value with leaner teams.
Steady, Structural Growth Ahead
Despite the plateau in hiring, industry leaders remain optimistic about long-term structural growth. The global push toward digital transformation, cybersecurity, cloud migration, and AI-driven automation continues to generate demand for Indian IT services.
Nasscom indicated that while macroeconomic headwinds persist in key markets such as the US and Europe, enterprise technology budgets remain resilient, especially for cost-optimisation and efficiency-enhancing solutions.
With AI adoption deepening across sectors — from banking and healthcare to manufacturing and retail — India’s IT industry appears poised for steady, innovation-led expansion in FY26, even as it navigates a shifting employment landscape.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
