Indian Tech Industry to Reach $300 Billion Revenue by FY26, Nasscom Report
On Monday, Nasscom revealed that the Indian technology industry is moving towards achieving $300 billion in revenue by the financial year 2025-26 (FY26). It further highlighted that in the current fiscal year (FY25), the sector is set to add at least 126,000 new jobs, bringing the total workforce to 5.8 million. The report further stated that in FY25, the industry strengthened its position as the global technology and innovation hub. The sector is expected to witness resilient growth in FY25, with revenue (including hardware) estimated to reach $283 Bn (5.1% y-o-y growth), an addition of nearly $14 Bn over last year. Additionally, the domestic technology sector is moving towards the $60 Bn mark, growing at 7.0% y-o-y to reach $58.2 Bn. Key growth drivers include the increasing use of enterprise software and cloud solutions and a 21% rise in data centre capacity, which has attracted more investments. Artificial intelligence (AI) adoption is gaining momentum, with Indian tech firms focusing on long-term partnerships to develop scalable AI solutions. The Nasscom Annual Enterprise CXO Survey 2025 predicts a strong growth trajectory for the technology sector in Calendar Year 2025 (CY25), driven by increased spending on digital transformation, particularly in AI-powered solutions. About 82% of CXOs expect to raise their digital investments by more than 5% compared to CY24. For technology service providers, the Financial Year 2025-26 (FY26) is anticipated to bring higher business growth. About 77% of companies in the Nasscom Annual Tech Services CXO Survey 2025 forecast increased technology spending. Expanding digital adoption, emerging markets, and rising AI-driven demand will fuel this growth. Besides, only 45% of service providers expect an increase in recruitment compared to FY25. Another major shift in global economic patterns in the current fiscal (FY25) has been a year of strategic resilience, with segments such as engineering R&D and global capability centres (GCCs) driving growth for the technology industry in India. In this regard, Nasscom chairperson Sindhu Gangadharan stated that increased AI implementation, the emergence of Agentic AI disrupting business models, and the increasing maturity of GCCs as hubs for value and transformation are driving the industry shifts. Additionally, e-commerce is expanding rapidly, with a 35% annual growth rate. The sector’s gross merchandise value (GMV) is expected to approach $200 billion soon. The digital economy now contributes about 12% to India’s GDP, with digital public infrastructure adding an extra 1%.With businesses increasingly focusing on digital transformation, experts stress the need for companies to invest in building resilient organisations and enhancing digital trust to sustain long-term growth in the tech industry.
The domestic technology sector is moving towards the $60 Bn mark, growing at 7.0% y-o-y.
The domestic technology sector is moving towards the $60 Bn mark, growing at 7.0% y-o-y.
["GCC"]
["API", "agentic AI", "artificial intelligence", "GCC", "AI", "digital transformation", "Scala", "Git", "Rust", "GAN", "R"]
["AI", "artificial intelligence", "agentic AI", "R", "Rust", "Scala", "Git", "API", "GAN", "digital transformation"]
Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.