India’s technology industry is set to cross a major milestone this year. According to industry estimates, the country’s IT sector is expected to generate more than $300 billion in revenue for the first time in the current financial year.
The projection comes at a time when artificial intelligence is reshaping the global tech landscape — creating both uncertainty and fresh opportunity.
In recent weeks, Indian IT stocks have faced pressure, mirroring declines seen in global technology markets. Investors have grown cautious, concerned that rapid advances in AI could disrupt traditional outsourcing and software service models, wiping out billions in market value.
However, industry body NASSCOM remains optimistic. It expects the sector to grow 6.1% year-on-year to reach about $315 billion by the fiscal year ending March 31. Growth is being supported by improving global demand for IT services, easing trade tensions, and increasing investments in AI-driven solutions. Similar revenue expansion is projected for the following fiscal year as well.
Srikanth Velamakanni, vice chairperson of Nasscom, noted that while AI is reducing demand for certain traditional services, it is simultaneously opening up new areas of work. In his view, AI has become central to nearly every technology proposal across industries. Today, it is no longer optional but a fundamental component of business strategies worldwide.
Nasscom estimates that AI-related services revenue could contribute between $10 billion and $12 billion in fiscal 2026. This figure does not include all AI-specific earnings across companies, and the body expects AI-driven revenue to rise significantly over the next few years.
India’s top IT services companies — including Tata Consultancy Services, Infosys, and HCLTech — have also signaled cautious optimism about demand improving in the coming fiscal year.
On the employment front, the industry is projected to add a net 135,000 jobs this year, taking the total workforce to nearly 5.95 million.
As AI continues to evolve, India’s IT sector appears to be navigating the shift carefully — balancing disruption in legacy services with growth in emerging, AI-powered opportunities.
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