Indian Tech Sector Poised for Strong Growth, Set to Cross $300 Billion by FY26, Says Nasscom
India’s technology sector is on track for accelerated growth in fiscal year 2025, according to the National Association of Software and Service Companies (Nasscom). The industry body projects a 5.1% growth in revenue, reaching $282.6 billion, compared to 4% growth in the previous fiscal year. This positive trajectory is expected to continue, with the sector forecasted to surpass $300 billion in fiscal year 2026. Key drivers behind this expansion include the increasing demand for engineering research and development (ER&D) and the growth of global capacity centres (GCCs), which are offshore hubs offering cost-effective solutions for global clients.
Software exports, which encompass services and product sales, are anticipated to grow by 4.6%, totaling $224.4 billion in fiscal 2025. Nasscom also predicts that the tech industry will add around 126,000 jobs, increasing the workforce to 5.8 million by the end of the fiscal year. The growth in headcount follows an uptick in employment in fiscal 2024, where the industry’s workforce grew from 5.58 million to 5.67 million.
A major factor driving these shifts is the rise of artificial intelligence, particularly Agentic AI, which has the potential to revolutionize business models by enabling autonomous operations. Indian IT companies, which heavily serve U.S.-based clients with software-as-a-service solutions, are adjusting to these rapid technological advancements. The growing implementation of AI, combined with the evolution of GCCs into more mature value hubs, is expected to reshape the industry dynamics.
Industry giants like Tata Consultancy Services (TCS), Infosys, and HCLTech are beginning to witness improved demand conditions after a sluggish 2024. With discretionary spending on the rise, these companies are optimistic about the future. As the tech sector continues to evolve, Nasscom chairperson Sindhu Gangadharan emphasizes the importance of workforce transformation, digital trust, and resilience in driving sustainable growth amidst an increasingly complex global environment.
SOURCE: REUTERS