India Tech Industry To Reach USD 315 Billion In FY26: NASSCOM

New Delhi, Feb 25 (KNN) India’s technology industry is projected to reach USD 315 billion in revenue in FY26, driven by steady enterprise technology spending and rising adoption of artificial intelligence (AI), according to NASSCOM’s latest annual strategic review.
 
The projection implies a 6.1 percent growth rate in FY26, slightly higher than the estimated 5.9 percent expansion in FY25.
 
AI Emerging as a Revenue Driver
 
AI is now contributing an estimated USD 10–12 billion to overall industry revenues. While still a relatively small share of the total industry, AI-led revenues are expanding rapidly as enterprises shift from pilot projects to scaled deployments.
 
Several major IT firms have disclosed AI-related revenues. Tata Consultancy Services (TCS) reported AI revenue at an annualised run rate of about USD 1.8 billion. HCLTech disclosed AI revenue of around USD 146 million, roughly 4 percent of its topline, alongside nearly 20 percent sequential growth in its advanced AI portfolio.
 
Infosys said AI now accounts for 5.5 percent of its revenue, generating approximately USD 275 million. Accenture, which had earlier disclosed AI revenue metrics, has stopped reporting the figure in recent quarters.
 
The data indicates that AI is becoming a meaningful though still nascent contributor to industry growth.
 
Jobs Scenario
 
Despite revenue expansion, employment growth remains subdued. According to NASSCOM net job additions in FY26 stood at approximately 1.35 lakh, marginally higher than 1.33 lakh in FY25. 
 
Year-on-year net addition was just about 2,000 jobs, signalling that hiring momentum has plateaued. Total workforce increased from 58.2 lakh (5.82 million) in FY25 to 59.5 lakh (5.95 million) in FY26, a 2.3 percent rise in headcount.
 
The muted hiring trend reflects how AI and automation are reshaping traditional employment patterns, weakening the long-standing correlation between revenue growth and workforce expansion.
 
Structural Shift Underway
 
The findings suggest a structural transition in India’s tech industry. Revenue growth increasingly powered by productivity gains and AI-driven efficiencies. Enterprises prioritising automation and digital transformation. Slower workforce expansion despite steady top-line growth. 
 
As AI adoption deepens, the sector may continue shifting from labour-intensive growth to a more technology-led expansion model.
 
(KNN Bureau)