India’s tech sector set to touch $315 billion in FY26 as AI-led growth accelerates

New Delhi- India’s technology industry is projected to reach revenues of $315 billion in FY26, registering a 6.1 per cent year-on-year growth, according to a report released on Tuesday by Nasscom.

The report noted that the past year marked a significant inflection point for the sector, with artificial intelligence transitioning from pilot projects to large-scale, real-world deployment. AI is now fundamentally transforming how businesses operate, deliver services and drive efficiency.

Despite global economic uncertainties and a broader slowdown in discretionary spending, demand for technology services remained resilient. However, clients are increasingly prioritising clear outcomes, measurable returns on investment and efficiency-driven transformation.

AI-related revenues alone are estimated to have crossed $10–12 billion in FY26, indicating that enterprises are committing dedicated budgets and deploying AI solutions at scale across operations.

The report also highlighted that India’s tech industry continued to generate employment even amid rising automation. The overall workforce expanded by 2.3 per cent during the year, while over two million professionals received training in AI skills, including 200,000 to 300,000 in advanced AI competencies.

The sector is increasingly adopting a “Human + AI” operating model, where professionals work alongside AI tools to enhance productivity and deliver higher-value outcomes.

Sindhu Gangadharan, Chairperson of Nasscom, said that AI is not only improving efficiency but also opening up new career pathways. She noted that as AI becomes embedded in daily business functions, roles are being redesigned with greater emphasis on outcomes, deeper specialisation and advanced AI expertise.

She added that companies are investing heavily in continuous learning to ensure that productivity gains from AI translate into sustainable growth and job creation.

Nasscom President Rajesh Nambiar said that while the global environment remains challenging, technology spending is increasingly shifting toward productivity-focused and AI-driven transformation initiatives.

The findings are supported by the Nasscom Global End User CXO Survey, which revealed that 86 per cent of global CXOs expect business demand to remain stable or rise in calendar year 2026, with more than half anticipating growth compared to the previous year.

With inputs from IANS