AI set to drive India tech growth to $315 billion
India’s technology sector is projected to grow 6.1% to reach $315 billion in revenue in the current fiscal year and remain at a similar level in the following fiscal year, driven largely by artificial intelligence-led services and continued expansion of global capability centres, according to industry body Nasscom.
Nasscom also revised upward the sector’s revenue for the previous fiscal year to $297 billion, compared with an earlier estimate of $283 billion, News.Az reports, citing Reuters.
The outlook comes at a time when the IT and software services industry has been grappling with subdued demand and concerns over disruption from increasingly advanced AI tools. Earlier this month, a sharp selloff in Indian IT stocks erased approximately $44 billion in market capitalization.
Despite these challenges, leading IT services firms such as Tata Consultancy Services, Infosys and HCLTech have indicated stronger demand prospects for fiscal year 2027. The companies cited robust deal bookings and a gradual return of discretionary spending by clients as key factors supporting the recovery.
In terms of employment, the technology sector is expected to add a net 135,000 jobs, bringing total headcount to 5.95 million in fiscal year 2026, Nasscom said. The workforce had already increased to 5.8 million in fiscal 2025, up from 5.67 million a year earlier.
However, hiring patterns are shifting. Rajesh Nambiar, president of Nasscom, acknowledged that campus recruitment has declined significantly compared with previous years, reflecting changes in demand dynamics and the growing role of automation and AI in the sector.
News.Az
By Nijat Babayev
