AI era reshapes India tech, but growth endures
Nasscom sees 6.1% sector revenue at $315 bn | Hiring stays positive | 1.35 lakh new jobs in FY26
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Mumbai: Despite geopolitics-inducing volatilities and changes in the landscape due to artificial intelligence platforms, the Indian tech sector is set to notch up a 6.1 per cent revenue growth in FY26 to USD 315 billion, Nasscom said on Tuesday.
The industry’s lobby grouping said it was able to add jobs in FY26, with 1.35 lakh new additions to take the overall number of direct employees to 59.5 lakh as against 58.15 lakh at the end of FY25.
The industry had added 1.33 lakh jobs on a net basis in FY25, which is set to grow to 1.35 lakh in FY26. The growth in net additions at 2,000 is one of the slowest in many years.
Its President Rajesh Nambiar said there is a non-linearity between job growth at 2.3 per cent, and revenue growth at 6.1 per cent, but expressed satisfaction at the industry continuing to be a net employee generator.
Nasscom said even as the tech landscape undergoes changes, it expects employee additions to continue going ahead as well. The body said over 20 lakh of the 59.5 lakh employees have been upskilled in AI, which includes up to 3 lakh on advanced AI skills.
In the strategic review of the ongoing fiscal year, Nasscom estimated the overall AI revenues at USD 10-12 billion in FY26, while Nambiar said not all companies report AI revenue.
The grouping also upwardly reviewed its FY25 revenue to USD 297 billion from the USD 282.6 billion estimate given in the review ahead of the end of the fiscal-year in February last year.
Speaking of the industry-wide trends and reasons behind the revenue growth in FY26, Nambiar acknowledged the headwinds witnessed by the industry but added that the “reality” is that technology spends continue to grow, albeit in newer areas, which were not traditional.
