Mint Primer | The $300 billion question for India’s IT sector
Subscribe to enjoy similar stories. Industry body Nasscom sees the Indian IT sector surpassing the $300 billion revenue milestone in FY26. But it’s also expected to witness a reset, with slower employee addition, higher costs, AI-driven growth, code-automation and more.
Mint decodes the road ahead: The Indian technology industry is expected to grow at 5.1% and add $13.8 billion incremental revenue, taking the total to more than $282.6 billion in FY25, according to Nasscom estimates. In FY26, the tech business will reach a milestone of $300 billion, it said. The coming fiscal will also see more AI-led growth.
FY25 was a year of strategic alliance, with growth driven by engineering and research & development and the global capability centres—captive units of multinationals. Around two-thirds of large deals centered around adoption of digital engineering services, expanding into BFSI, healthcare and retail. As global enterprises adopt AI, proofs of concept (to show what AI can do) will move into actual rollout.
Increased adoption of enterprise software and cloud solutions will continue, boosting growth. While BFSI continues to be the top spender, demand for healthcare & life sciences services is also expected to expand as more companies adopt AI solutions to cut administrative costs and boost efficiency. According to Nasscom, more than 90% of the top 20 services firms are integrating AI, cloud, data, and GenAI, with 10-15% of enterprise GenAI proofs of concept transitioning to full-scale production.
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