The Indian technology industry is projected to achieve $300 billion in revenue by the financial year 2026, according to a report by Nasscom. For the current fiscal year (FY25), the sector is expected to add approximately 126,000 net new employees, bringing the total workforce to 5.8 million.
Amid evolving global economic conditions and shifting market dynamics, FY25 has been a year of strategic resilience. Segments such as engineering research and development (ER&D) and global capability centers (GCCs) have been key growth drivers for India’s technology sector.
The Annual Strategic Review 2025 by Nasscom highlighted that the industry grew by 5.1% during FY25, adding $13.8 billion in incremental revenue. This increase has taken the sector’s total revenue, including hardware, to over $282.6 billion.
India’s digital economy, supported by sustained growth in domestic tech spending, outpaced export growth for the second consecutive year. Domestic tech revenue grew by 7% annually compared to FY24, driven by the widespread adoption of enterprise software and cloud solutions. Additionally, data center capacity saw a 21% increase, fueling further investments.
“Enhanced AI implementation, the rise of Agentic AI disrupting business models, and the increasing maturity of GCCs as hubs for value creation and transformation are shaping industry trends,” said Sindhu Gangadharan, Chairperson of Nasscom.
As technology becomes increasingly intertwined with global geopolitics and trade dynamics, businesses are urged to focus on enhancing tech skills within their workforce. Gangadharan emphasized the importance of building resilient organizations and investing in digital trust to sustain long-term growth.
The broader digital economy now contributes an estimated 12% to India’s GDP, with Digital Public Infrastructure adding a 1% boost. E-commerce continues to expand at a rapid pace, growing at an annual rate of 35%, with the sector’s gross merchandise value (GMV) expected to reach nearly $200 billion.
Rajesh Nambiar, President of Nasscom, noted that India’s tech skill intensity will play a crucial role in driving future growth. While AI adoption across the industry remains measured, over 55% of AI-related activities by Indian tech services firms are focused on long-term co-creation partnerships aimed at developing scalable, future-ready AI solutions.
With sustained growth in both domestic and global markets, coupled with advancements in digital infrastructure and AI adoption, India’s tech industry is poised to maintain its upward trajectory in the coming years.
-IANS
