India’s technology sector is projected to expand to $315 billion in revenue in fiscal year 2026.
The estimate was released by Nasscom on Tuesday.

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The projected growth rate for the current fiscal year stands at 6.1%. The industry body said revenue is expected to remain at around the same level in the following fiscal year.

Nasscom also revised its estimate for the previous fiscal year. Sector revenue for last year was raised to $297 billion from an earlier estimate of $283 billion.

Key Growth Drivers

According to Nasscom, growth in the sector is being driven by artificial intelligence-led services. Business generated from global capability centres continues to support revenue expansion.

The sector has faced pressure in recent quarters due to weaker global demand. Concerns over disruption from advanced artificial intelligence tools have also weighed on sentiment.

Earlier this month, Indian information technology stocks saw a sharp selloff. The decline wiped out about $44 billion in market capitalisation across listed IT companies.

Employment Trends

The technology sector is expected to add 135,000 jobs on a net basis in fiscal year 2026. Total headcount is projected to rise to 5.95 million during the year.

In fiscal 2025, the sector’s workforce stood at 5.8 million. This marked an increase from 5.67 million in the previous year.

While overall employment continues to grow, hiring trends have moderated. Campus hiring has declined compared with earlier years, Nasscom said.
Industry Conditions

The IT and software services sector has been navigating uneven demand conditions. Spending by global clients has remained selective across several service lines.

Despite these challenges, Indian technology companies continue to secure large contracts. Global enterprises have maintained investments in digital transformation and efficiency-led projects.

Nasscom said artificial intelligence adoption is reshaping service delivery models. The transition is influencing hiring patterns and skill requirements across the industry.

Sector Context

India’s technology sector remains one of the largest employers in the country. It continues to play a significant role in export earnings and service-sector growth.

The sector has expanded steadily over the past decade, despite cyclical slowdowns. Revenue growth has moderated from earlier peaks but remains positive.

Nasscom said the industry is adjusting to structural shifts in demand and technology adoption. Global capability centres remain a stable source of incremental business for Indian firms.

The industry body said revenue growth in the near term will reflect a balance between new technology-driven opportunities and ongoing demand constraints.