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India’s technology sector is expected to grow 6.1% to $315 billion in revenue in the current fiscal year, and remain at a similar level next year, driven by AI-led services and rising business from global capability centres (GCCs), industry body Nasscom said on Tuesday.
Nasscom also revised its revenue estimate for the previous fiscal year upward to $297 billion, from an earlier projection of $283 billion, reflecting stronger-than-expected performance across select segments.
The outlook comes at a time when the IT and software services industry has been navigating sluggish global demand and concerns over disruption from advanced AI tools. Earlier this month, Indian IT stocks saw a sharp selloff, erasing nearly $44 billion in market capitalisation, amid investor worries over near-term growth and pricing pressure.
Despite the volatility, leading Indian IT services companies such as Tata Consultancy Services, Infosys and HCLTech have indicated an improving demand environment for fiscal year 2027. The companies have pointed to robust deal pipelines, strong contract bookings, and a gradual return of discretionary technology spending by global clients.
Nasscom said the sector is expected to add 135,000 net new jobs in fiscal 2026, taking the total workforce to 5.95 million. The industry employed about 5.8 million people in fiscal 2025, up from 5.67 million a year earlier.
However, hiring patterns are undergoing a structural shift. Nasscom President Rajesh Nambiar said campus recruitment has moderated significantly compared to previous years, reflecting both automation-led productivity gains and cautious hiring by firms amid ongoing macroeconomic uncertainty.
While traditional IT services face near-term pressure, Nasscom said artificial intelligence, digital transformation, and GCC expansion are emerging as key growth engines, helping the sector stabilise and adapt to changing global demand patterns.
Nasscom also revised its revenue estimate for the previous fiscal year upward to $297 billion, from an earlier projection of $283 billion, reflecting stronger-than-expected performance across select segments.
The outlook comes at a time when the IT and software services industry has been navigating sluggish global demand and concerns over disruption from advanced AI tools. Earlier this month, Indian IT stocks saw a sharp selloff, erasing nearly $44 billion in market capitalisation, amid investor worries over near-term growth and pricing pressure.
Despite the volatility, leading Indian IT services companies such as Tata Consultancy Services, Infosys and HCLTech have indicated an improving demand environment for fiscal year 2027. The companies have pointed to robust deal pipelines, strong contract bookings, and a gradual return of discretionary technology spending by global clients.
Nasscom said the sector is expected to add 135,000 net new jobs in fiscal 2026, taking the total workforce to 5.95 million. The industry employed about 5.8 million people in fiscal 2025, up from 5.67 million a year earlier.
However, hiring patterns are undergoing a structural shift. Nasscom President Rajesh Nambiar said campus recruitment has moderated significantly compared to previous years, reflecting both automation-led productivity gains and cautious hiring by firms amid ongoing macroeconomic uncertainty.
While traditional IT services face near-term pressure, Nasscom said artificial intelligence, digital transformation, and GCC expansion are emerging as key growth engines, helping the sector stabilise and adapt to changing global demand patterns.
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