Indian Tech Industry Revenues To Grow 6.1% To $315 Billion In FY26: Nasscom

The Indian technology industry is set to cross the $300-billion mark in fiscal 2026, with total revenues forecast at $315 billion, a 6.1% year-on-year expansion, according to the National Association of Software and Services Companies (Nasscom). The figure marks a measured rebound after a year of structural reset and arrives amid intense debate over how artificial intelligence, global headwinds and shifting demand patterns will reshape growth and jobs, but can the sector convert AI momentum into durable, broad-based gains?

What Are The Numbers Behind Nasscom’s FY26 Projection?

Nasscom’s Annual Strategic Review 2026 places FY26 industry revenue at $315 billion, up 6.1% from the revised FY25 figure of $297 billion (Nasscom revised FY25 from an earlier $282.6 billion). The industry segmentation outlined in press reports shows: IT services at roughly $149 billion; engineering, R&D and design (ER&D) at about $63 billion; business process management (BPM) at $59 billion; software products at $23 billion; and hardware at $21 billion. Exports are estimated to be approximately $246 billion for FY26. These component figures explain how the headline sum is constructed and highlight that services still account for the largest share of industry receipts.

What Is Driving Growth: Is AI The Main Factor?

Nasscom highlights AI as a central growth vector: AI-related revenue is estimated at $10–12 billion for FY26, reflecting scaled, function-specific deployments that are moving beyond pilots into commercial offerings.

The report notes that large-scale upskilling is more than two million professionals trained in AI, including 200,000–300,000 in advanced AI skills, and growing investments by firms into AI capabilities and productisation.

At the same time, the body cautions that AI is both automating traditional tasks and creating new revenue streams, producing productivity gains even as it alters labour composition. The net headline growth rate (6.1%), therefore, combines steady enterprise tech spending with an incremental but still nascent AI revenue contribution.

What Are The Employment And Export Implications?

Nasscom projects a net addition of about 135,000 jobs in FY26, raising total sector headcount to nearly 5.95 million. That represents a modest hiring rate (roughly 2.3% year-on-year), indicating that productivity gains, partly driven by AI and automation, are constraining the headcount elasticity of revenue growth.

Exports, which constitute the bulk of industry earnings, are expected to be around $246 billion; domestically consumed revenues and product sales are driving the remainder.

The muted hiring pace and the concentration of AI upskilling suggest the sector is shifting toward higher-skill, higher-value roles even as routine roles face replacement or redeployment.

Sources

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