NASSCOM president: India’s tech industry likely to see similar growth in FY27

NASSCOM president: India’s tech industry likely to see similar growth in FY27

India’s Tech Industry Poised for Steady Growth in FY27, NASSCOM Forecasts

India’s technology sector is expected to maintain a moderate growth trajectory in fiscal year 2027 (FY27), with revenue expansion projected at 5–7% annually, according to NASSCOM and McKinsey's latest forecast. This aligns with broader trends observed in the industry's FY25 performance, where revenue, including hardware, reached $283 billion, reflecting a 5.1% year-on-year increase. While legacy service lines face compression due to heightened demand for productivity-driven solutions, high-growth segments like data analytics and artificial intelligence (AI) are anticipated to expand at 12–15% annually.

The AI segment, in particular, is gaining momentum, with India's AI market projected to grow at a compound annual growth rate (CAGR) of 25% until 2027, driven by rising investments and a skilled workforce. Over 420,000 professionals are currently engaged in AI-related roles, and 90% of top providers have committed to upskilling initiatives in generative AI and machine learning. Microsoft India President Puneet Chandok emphasized the country's leadership in AI adoption, noting that 93% of Indian organizations plan to integrate AI agents to enhance workforce capabilities within 12–18 months.

Infrastructure development remains a critical focus. NASSCOM's Ashish Aggarwal highlighted efforts to build AI-ready telecom networks, power systems, and data centers, mirroring India's earlier digital transformation success. The government's emphasis on Global Capability Centres (GCCs) and tax clarity for data center investments is seen as pivotal for sustaining growth.

Despite these positives, challenges persist. The industry seeks operational improvements, including streamlined taxation and regulatory clarity, to support scaling AI infrastructure and global competitiveness. NASSCOM's Strategic Review 2025 underscores the need for collaboration, innovation, and talent development to navigate evolving market demands.

In summary, while India's tech industry faces a mixed landscape of opportunities and constraints, its strategic focus on AI, hybrid human-AI collaboration, and infrastructure resilience positions it for steady growth in FY27 and beyond.