India’s tech sector annual sales seen $315B in FY2026: NASSCOM

India’s tech sector annual sales seen $315B in FY2026: NASSCOM

India’s Tech Sector Annual Sales Projected to Reach $315 Billion in FY2026: NASSCOM

India’s technology sector is on track to achieve annual sales of $315 billion in fiscal year 2026 (FY26), reflecting a projected 6.1% year-on-year (YoY) growth from an estimated $297 billion in FY25, according to NASSCOM. This growth is driven by resilience in core IT services, engineering research and development (ER&D), and global capacity centres, despite global economic uncertainties and tighter client spending as reported.

While artificial intelligence (AI) is expected to contribute 3-4% of total revenue—approximately $10–12 billion—scaling adoption beyond pilot projects is gaining momentum. However, traditional segments remain the backbone of the sector, with IT services alone projected to generate $149 billion in FY26. ER&D is forecast to add $63 billion, business process management (BPM) $59 billion, and software products $23 billion according to BusinessWorld. Export revenue is anticipated to reach $246 billion, with Asia-Pacific and the Middle East emerging as key growth markets as BusinessWorld reports.

The sector’s domestic market is also expanding, supported by incremental gains in healthcare, travel, and transportation, largely driven by global capability centres (GCCs). Despite automation-driven productivity gains, the industry remains a net hirer, with a 2.3% workforce growth rate. Over two million professionals have been upskilled in AI, including 200,000–300,000 in advanced AI skills, as companies adapt to outcome-led transformation according to BusinessWorld.

NASSCOM highlighted that GCCs and ER&D will continue as primary growth engines, while cybersecurity, cloud computing, and data analytics are approaching critical mass. “AI is accelerating productivity and changing the nature of work, but it is also expanding the opportunity frontier,” said NASSCOM Chairperson Sindhu Gangadharan, emphasizing the sector’s focus on integrating “Human + AI” teams to convert efficiency gains into sustainable growth as cited by BusinessWorld.

This milestone underscores India’s tech sector as a key global player, balancing innovation with traditional strengths to navigate evolving market dynamics.