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India IT Sector to Hit $315B, AI Fuels Growth
24 Feb
Summary
- India's tech sector revenue is projected to reach $315 billion in FY25.
- Artificial intelligence is a key driver of expected sector growth.
- The sector anticipates adding 135,000 jobs in FY26.
India's technology industry is set to achieve $315 billion in revenue for the current fiscal year, with sustained growth anticipated for the next. This positive outlook is primarily fueled by the increasing demand for artificial intelligence-led services and the robust performance of global capacity centers within the country.
Industry body Nasscom has revised last fiscal year's revenue upward to $297 billion. Despite earlier challenges, including market sell-offs and concerns over AI's disruptive potential, the sector is showing resilience. Top IT service providers foresee stronger demand in fiscal year 2027, citing healthy contract bookings and a revival in discretionary spending.
Furthermore, the tech sector is projected to expand its workforce by a net 135,000 jobs in fiscal year 2026, bringing the total employment to 5.95 million. This follows a notable increase in workforce numbers in the previous fiscal year, underscoring the sector's continued expansion and job creation capabilities.
