India’s technology industry is projected to hit $315 billion in revenue by FY26, reflecting a 6.1% growth from the previous year, according to a report by Nasscom. The sector witnessed a significant shift as artificial intelligence (AI) transitioned from experimental phases to practical business applications, reshaping operational dynamics and service delivery.
Despite global economic uncertainties and a general reset in corporate expenditures, the demand for technology services remained robust. Clients are now emphasizing tangible returns, enhanced efficiency, and outcome-driven transformations. AI revenue is estimated to have surpassed $10-12 billion in FY26, indicating a substantial deployment of AI at scale with dedicated budgets.
The report emphasized that India’s tech industry continued to generate employment opportunities even amidst rising automation and AI integration. The workforce expanded by 2.3% during the year, with over two million professionals trained in AI skills, including a significant number in advanced AI capabilities. Companies are increasingly fostering “Human + AI” teams, where employees collaborate with AI tools to boost productivity and enhance outcomes.
Sindhu Gangadharan, Chairperson of Nasscom, highlighted that AI is not only enhancing efficiency but also creating fresh career prospects. As AI becomes ingrained in daily business operations, roles are being restructured to prioritize outcomes, specialized expertise, and advanced AI skills. Gangadharan noted substantial investments in continuous learning to convert efficiency gains into growth and job generation.
Rajesh Nambiar, President of Nasscom, pointed out that while the global landscape may have decelerated, there is a noticeable shift in technology spending towards productivity-centric and AI-driven transformations. These observations align with the Nasscom Global End User CXO Survey, which gleaned insights from international business leaders. The survey revealed that 86% of CXOs anticipate stable or growing business demand in the calendar year 2026, with more than half expecting growth compared to the previous year.
