India IT Revenue to Grow 6.1% to $315 Billion in FY26, Hiring to Remain Flat

India’s technology sector is poised to grow 6.1% to $315 billion in the current fiscal year ending in March, industry body Nasscom said, largely due to the inclusion of newly tracked global capability centers (GCCs) and AI firms, even as hiring slows and the industry shifts toward productivity-driven growth.

The upgraded forecast marks a recalibration of the sector’s revenue base, with Nasscom revising prior years upward after expanding its tracking universe to include additional companies and capability centers.

Rajesh Nambiar, President of Nasscom, said the past year marked “a reset for the global environment,” but technology demand remained resilient, shifting toward productivity, measurable return on investment and scaled AI deployments. “India’s AI advantage is widening, making organizations more agile and outcome led,” he said.

Growth engines such as GCCs and engineering, research and design (ER&D) are moving “from scale to strategic ownership, reinforcing India’s role as a trusted partner built on cyber resilience and responsible AI,” he added.

Segment-wise, IT services, which account for nearly half of the sector, contribute more than $143 billion and are expected to drive over 30% of incremental growth, while ER&D contributes $59 billion, customer support $55 billion, software products $21 billion and hardware $19 billion.

Nasscom also revised revenue estimates for previous years after incorporating additional company data, adjusting FY25 to $297.2 billion, FY24 to $280.7 billion and FY23 to $267 billion.

Revenue growth is expected to remain in the 5% to 6% range in the coming years. On hiring, the sector added 133,000 employees in FY25 and is expected to add more than 135,000 in the current fiscal. However, Nasscom said recruitment is likely to remain stagnant in the next fiscal year and beyond.

The moderation in hiring, despite steady revenue expansion, underscores a gradual decoupling of workforce growth from sector performance.

Sindhu Gangadharan, Chairperson of Nasscom, said AI is accelerating productivity and reshaping roles, while also expanding opportunities.

“As AI gets embedded across functions, we will see roles redesigned around outcomes, deeper specialization, and significantly higher AI fluency,” she said. “The industry’s focus is on building ‘Human + AI’ teams, investing in continuous skilling, and converting efficiency gains into growth.”